Rivian R1T Review & IPO: Inside the Electric Pickup Truck

The Station: A Comprehensive Overview of Transportation Innovation

Greetings, valued readers! Welcome to The Station, your dedicated resource for tracking the evolution of people and goods movement – encompassing historical advancements, current trends, and future possibilities.

This past week was significantly focused on electric vehicles. It began with developments surrounding the Polestar SPAC and culminated in Rivian’s submission of its IPO filing. Notably, Tesla announced unprecedented delivery and production figures on Saturday, exceeding projections made by industry analysts.

Key Highlights and Industry Updates

Beyond these major events, this edition includes valuable perspectives. Aria Alamalhodaei’s policy analysis centers on employment opportunities within the transportation sector, while Rebecca Bellan provides a summary of the latest news in micromobility.

Let's delve into the details.

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The Resurgence of Micromobility

Bikeshare stations were notably absent from the White House grounds during the Trump administration. However, this week marked a change, with bikeshare services reinstated.

Lyft, the operator of Capital Bikeshare in the D.C. area, has installed an 11-dock station compliant with Buy America standards at the E Street NW and South Executive Avenue entrance. Access to this station is restricted to White House personnel, and it will not be visible within the public-facing application.

This development is beneficial for broader adoption; increased use of zero-emission transport options by policymakers and their teams may encourage supportive policies for shared micromobility programs.

Recent research indicates that U.S. bikeshare systems contribute to $36 million in annual healthcare savings, alongside reductions in traffic congestion and carbon emissions. This highlights the complementary role of bicycles alongside electric vehicles.

Washington D.C. demonstrates a commitment to this concept. The recently approved Fair Shot Budget, championed by Mayor Bowser, allocates $19 million for the addition of 80 new Capital Bikeshare stations and 3,000 e-bikes. The initiative aims to ensure every D.C. resident lives within a quarter-mile radius of a bikeshare station.

Investment in the Micromobility Sector

Cake, an electric motorcycle manufacturer, recently secured $60 million in Series B funding shortly after introducing the Makka, a new city utility bike. These funds will facilitate the establishment of manufacturing facilities across Europe, North America, and Asia, reducing shipping costs and carbon footprint.

Cake also intends to expand its retail presence, opening showrooms in major cities this fall.

German startup Dance has raised $19.4 million following the launch of its e-bike subscription service in Berlin. Subscribers can access the in-house-designed Dance One e-bike through a white-glove rental service for $93 monthly.

Dance will utilize the investment to expand its operations and engineering teams, with plans to extend its service to additional European cities next year.

Ola Electric has garnered over $200 million in funding at a $3 billion valuation, earmarked for scaling its electric vehicle manufacturing operations in South Asia. Following the release of its first electric scooter, the Ola S1, the company plans to develop further e-vehicles, including motorbikes, mass-market scooters, and an electric car.

Ola Electric anticipates an initial public offering sometime next year.

Competitive E-Scooter Racing

The eSkootr Championship (eSC), the world’s inaugural electric kickscooter race series, is scheduled to commence in 2022.

The eSC previously unveiled the S1-X electric scooter. Further details have now been released, including specifications. These scooters are capable of exceeding 60 miles per hour, powered by dual in-wheel hub motors and a boost button providing an additional 20% power on straight sections.

Rapid Grocery Delivery Innovations

Deliveroo, a British online food delivery company, has partnered with supermarket chain Morrisons to launch its first “dark store” for expedited grocery deliveries in central London.

Dubbed “Deliveroo Hop,” the new service promises deliveries within 10 minutes. While London already hosts similar services from companies like Jiffy, Getir, Zapp, and Weezy, the proliferation of these dark stores is being observed globally. Concerns are being raised regarding the pressures placed on gig workers to fulfill these rapid delivery demands.

Promoting Transit Equity and Affordability

Orion Electrics Company is focused on both affordable e-bike sales, with prices starting at $899, and the deployment of rental e-bikes in underserved, low-income communities.

Unlike some services charging $10 for a 20-minute ride, Orion’s service offers reservations for as little as $10 monthly or $60 annually for unlimited access. The company is also collaborating with communities, businesses, and educational institutions to provide free bike access through contractual agreements.

Orion plans to initiate pilot programs in Columbus, Ohio in 2022 and Cincinnati in 2023.

— Rebecca Bellan

This Week's Notable Deals

Rivian recently made its initial public offering (IPO) filing public, releasing its S-1 document, which has garnered significant attention. Following the release of initial news coverage, a more in-depth analysis of the S-1 was conducted, revealing several key insights.

Further examination of the S-1, along with input from industry observers, has highlighted additional noteworthy points regarding Rivian’s future plans. While the IPO terms remain undefined, numerous aspects of the company’s strategy are becoming clearer.

Expanding Beyond Vehicle Sales

Rivian intends to diversify its revenue streams beyond the conventional automotive model of vehicle assembly, sales, and financing. This approach mirrors the ambitions of established automakers, but Rivian is integrating this strategy from its inception.

The company plans to offer a range of vehicle variants at varying price points, potentially including more affordable options than its current models priced between $67,000 and $75,000. Initially targeting the U.S. and Canadian markets, Rivian aims to expand into Western Europe and subsequently into major Asian-Pacific regions, accompanied by localized production facilities.

Beyond vehicle sales, Rivian will offer integrated hardware solutions – including charging infrastructure, energy generation, and storage – alongside software-based energy management systems for residential, industrial, and commercial applications.

Rivian envisions becoming the largest centrally managed electric vehicle (EV) fleet, which would enable the development of future service offerings, including autonomous mobility-as-a-service for both people and goods.

The Role of Amazon

The Rivian S-1 filing contains 81 mentions of Amazon, reflecting the company’s dual role as an investor and a key customer. Amazon currently holds at least 5% of Rivian, with the precise percentage still to be determined. Ford also maintains a stake exceeding 5%, alongside other investors.

Rivian’s commercial fleet is largely designed with Amazon’s needs in mind, as the e-commerce giant is expected to purchase approximately 100,000 vehicles. While certain design elements of the commercial electric vans (EDV) will be exclusive to Amazon, the partnership is open to other customers.

Rivian will exclusively provide last-mile delivery vehicles to Amazon’s logistics unit starting on the fourth anniversary of the “Initial Delivery Date,” anticipated to be December 2021. Between the fourth and sixth anniversaries, Amazon will have the right of first refusal for any last-mile delivery vehicles produced by Rivian.

Ford’s Involvement

Ford currently owns more than 5% of Rivian stock and played a role in the early development of Rivian’s vehicles. A deal reached in April 2019 with Ford’s Troy Design and Manufacturing subsidiary involved the development, production, and supply of “bodies in white” for the R1T, R1S, and EDV programs.

Ford produced Rivian’s early prototype builds from 2019 until Rivian began stamping and assembling its own “BIWs” at its Normal, Illinois factory. Rivian paid Ford $8 million in 2019 and $66 million in 2020 for these services.

Despite its stock ownership and past collaboration, Ford no longer has representatives on Rivian’s board of directors. Joe Hinrichs and Alexandra Ford English both previously held board positions but have since departed, with Amazon and Cox Automotive currently holding board seats.

Other Significant Deals

Beyond Rivian, several other noteworthy deals have recently taken place in the automotive and technology sectors.

Polestar, Volvo’s electric performance brand, has agreed to go public through a special purpose acquisition company (SPAC) merger with Gores Guggenheim Inc., resulting in a valuation of $20 billion. The combined company will be listed on Nasdaq under the ticker symbol “PSNY.”

Polestar joins a growing number of EV manufacturers that have opted for the SPAC route to public markets, including Arrival, Canoo, Fisker, Lordstown Motors, and Lucid Group. Rivian remains the primary exception, pursuing a traditional IPO.

Additional Investment Activity

Here’s a summary of other recent deals:

• AutoLeap, an auto repair software company, secured $18 million in a Series A funding round led by Bain Capital Ventures.
• Contemporary Amperex Technology (CATL), a leading Chinese battery manufacturer, agreed to acquire Millennial Lithium for CAD $377 million ($297 million) in an all-stock deal.
• Energize Ventures closed its second fund with $330 million in commitments, focused on scaling software solutions for renewable energy, mobility, and related sectors.
• NASA awarded $253.4 million to GE Aviation and MagniX to develop electric propulsion technologies for aircraft, aiming for implementation by 2035.
• Ninja Van, a Singapore-based logistics company, raised $578 million and is considering an IPO within the next 18 months.
• Pegasus Digital Mobility Acquisition, a SPAC led by former Jaguar Land Rover CEO Ralf Speth, filed for an IPO.
• Swiggy, an Indian food delivery startup, is in discussions to raise over $500 million in a new funding round, potentially valuing it at over $10 billion.
• Woven Planet Holdings, a Toyota subsidiary, acquired Renovo Motors, an automotive operating system developer.

Argo AI Expands to Los Angeles

Argo AI is now establishing a presence in Los Angeles, California.

Previously, in August, it was reported that Argo AI had secured a permit within California, enabling the provision of complimentary rides to the public utilizing its self-driving vehicles on designated public roads.

While Argo AI had not formally revealed the specific city it intended to target for a robotaxi service within California, indications now point towards Los Angeles.

Since 2019, the company has been actively evaluating its autonomous vehicle technology integrated into Ford vehicles in the vicinity of Palo Alto.

Current Testing Locations

Currently, Argo AI operates a test fleet of approximately twelve self-driving test vehicles throughout California.

Testing also extends to other key cities, including Miami, Austin, Washington, D.C., Pittsburgh, and Detroit.

In July, a collaborative announcement from Argo and Ford detailed plans to deploy a minimum of 1,000 self-driving vehicles onto Lyft’s ride-hailing platform across several cities within the next five years.

Initial deployments are scheduled to commence in Miami and Austin.

Earlier speculation suggested a southern location, with San Diego being a primary consideration.

However, this prediction proved inaccurate.

Confirmation of the Los Angeles expansion came via a social media post from a newly hired employee this week.

The post announced their new position within Argo AI’s autonomy platform integration team.

In response to an inquiry regarding a potential relocation to Pittsburgh, the employee stated:

“I will be working remotely until our Los Angeles office is operational.

I do appreciate Pittsburgh, and would be open to visiting the main headquarters.”

Policy Corner

Welcome back to Policy Corner! This week’s focus is on employment trends and developments.

A significant announcement has been made by Ford, in collaboration with SK Innovation, its battery technology partner based in South Korea. The companies plan to invest $11.4 billion in the construction of two large-scale manufacturing facilities located in Tennessee and Kentucky. This substantial investment is projected to create approximately 11,000 new employment opportunities.

This development represents a positive outcome for President Joe Biden, who has actively encouraged automotive manufacturers to relocate more of their electric vehicle and battery production operations to the United States. Support from other legislators is evident, with proposals suggesting that new electric vehicle purchase incentives should be limited to vehicles produced domestically and under union agreements. (Further details regarding the proposed tax credit expansion can be found here – note that not all automotive companies are in favor of these changes.)

The question of whether these newly created positions will be unionized remains unanswered at this time. A detailed report published by Reuters explores this issue – it is highly recommended reading. Both Tennessee and Kentucky operate under “right-to-work” laws, which prohibit mandatory union membership as a condition of employment. Reuters posits that Ford is deliberately avoiding a definitive statement on unionization to avoid potentially jeopardizing relationships with political stakeholders in the southern states, whose approval is crucial for securing essential funding and incentives related to the automaker’s plans.

The potential impact on employment resulting from the shift towards electric vehicles is a major concern within the industry. Generally, the manufacturing of electric vehicles requires a smaller workforce compared to internal combustion engine vehicles, due to the reduced number of components and a more streamlined powertrain. Furthermore, unionized workers typically earn 20% more than their non-union counterparts.

The Economic Policy Institute estimates that a lack of proactive manufacturing policies, coupled with a projected 50% market share for electric vehicles by 2030, could lead to as many as 75,000 job losses by the end of the decade. However, increased domestic production capacity for powertrains could lessen these effects.

The Center for American Progress and other similar organizations concur that a combination of policies aimed at attracting EV manufacturers to the U.S. and strategic investments in job creation are essential to ensure that workers are not negatively impacted by the evolving automotive landscape.

Throughout his presidency, President Biden has consistently emphasized the potential for the electric vehicle revolution to generate “good-paying union jobs.” While union membership isn’t the sole determinant of a “good job,” and Ford has not yet disclosed the anticipated salaries for these 11,000 positions, the company’s commitment to domestic manufacturing is a promising sign for the workforce.

— Aria Alamalhodaei

Recent Developments and Industry Updates

A significant volume of news emerged this week, necessitating a selective overview of key events. The sheer amount of information warrants focusing on the most impactful developments.

Autonomous Vehicle Technology

Aurora extended invitations to media representatives, partners, and both current and prospective investors to examine its technological advancements and operational infrastructure. I was present during this visit and documented my observations and experiences.

Regulatory approvals have been granted to both Cruise and Waymo, permitting them to commence charging for autonomous vehicle services within designated areas of San Francisco. This development is poised to introduce considerable changes to the transportation landscape.

Kodiak Robotics unveiled its fourth-generation autonomous vehicle truck, featuring a modular sensor configuration incorporating lidar technology from Luminar and Hesai. Following the announcement, I engaged in a detailed discussion with co-founder and CEO Don Burnette, exploring their business strategy and automation approach. A comprehensive analysis of this topic will be presented next week.

Electric Vehicle Sector

Ford Motor, in collaboration with battery manufacturer SK Innovation, announced a substantial $11.4 billion investment to establish two expansive campuses in Tennessee and Kentucky. These facilities will be dedicated to battery production and the manufacturing of the next-generation electric F-Series trucks, creating an estimated 11,000 jobs. Rebecca Bellan examined the implications for Ford’s manufacturing footprint.

Foxconn has reached an agreement to manufacture electric vehicles for both Lordstown Motors and Fisker Inc. at a former GM facility in Ohio. This arrangement highlights the evolving dynamics within the automotive industry.

Lamborghini articulated its vision for the future of its brand. Abigail Bassett provides an in-depth analysis of their strategic direction.

Lucid Group hosted a media event, inviting journalists, customers, and analysts to tour its production facility. Abigail Bassett and I were among the attendees. Her assessment of the Lucid Air is available here, noting that the driving experience was limited. Interestingly, due to the inclusion of lidar, the Lucid Air required a form of “approval” from the FDA – not in the pharmaceutical sense, but rather a self-certification process confirming the sensor’s adherence to specific FDA standards, similar to FMVSS certifications.

Rivian extended invitations to members of the press to evaluate its R1T pickup truck. I spent several days testing the vehicle and engaging with engineers and staff. My conclusion is that Rivian has created an electric truck that appeals to a previously untapped market segment, potentially attracting customers who had not previously considered owning a pickup truck. Additionally, I compiled a video showcasing the final iteration of the camp kitchen.

The Gig Economy

A proposed measure to classify gig economy workers as independent contractors, if approved in the November 2022 ballot, could result in drivers earning as little as 25% of the minimum wage, as indicated by a recent study from the University of California-Berkeley.

Miscellaneous Updates

Honda revealed a strategic plan focused on innovation in emerging business areas, including electric vertical take-off and landing (eVTOL) aircraft, bipedal robots, and space technology. The company’s research and development divisions will spearhead efforts to explore “outside-the-box research on technologies that will bring about new value for people by expanding the potential of mobility into the third dimension, then the fourth dimension, which defies the constraints of time and space, and ultimately into outer space.”

This represents a remarkably ambitious and forward-thinking approach.

Gene Berdichevsky, co-founder and CEO of battery chemistry company Sila Nano, discussed the challenges of scaling production with Rebecca Bellan of TechCrunch.