Energy

$4.7 billion raised in the new EV startups funding by Cruise and Rivian

Summary

There is a likelihood that Tesla would be the electric vehicles’ king, although it is facing more competition from its rivals. Last week, two EV startup companies received a significant boost. In new investments, Ford and Amazon announced that they […]

There is a likelihood that Tesla would be the electric vehicles’ king, although it is facing more competition from its rivals. Last week, two EV startup companies received a significant boost. In new investments, Ford and Amazon announced that they had backed Rivian with $2.65 billion. On the other hand, GM’s Cruise imprint entered into a long-term partnership with Microsoft, which helped it raise $2 billion. This is due to the increased public interest in the automotive industry.

Since the beginning of 2019, California-based Rivian has gathered over $8 billion courtesy of T. Rowe Price. As of now, the current Rivian valuation is at $27.6 billion. Amazon is one of the largest Rivian’s customers. It has ordered over 100,000 Rivian’s electric vans, which it intends to use as delivery vehicles for its products. The first batch of these vehicles would be manufactured by the end of this year, and the final batch to be delivered by 2024.

For Cruise to successfully scale and commercialize its autonomous cars, it will heavily depend on Microsoft’s Azure cloud computing software. This will also be a great opportunity for Microsoft as it will use Cruise’s auto industry competence to offer Azure technology to other automakers and companies efficiently. The current Cruise valuation is at $30 billion following the new investment.

According to one Reuters’ executive, Rivian plans to diversify its electric vehicles to smaller vehicles, which are in line with the European and Chinese markets. GM hopes that Cruise could usher in a new revolution of autonomous taxis to get rid of unwanted urban centers’ congestion. Manu carmakers are working on manufacturing electric vehicles as they predict that the market share will increase. They are also being pushed by policies that are being put in place to ban all conventional vehicles within the set timelines.

This is because many countries are committed to reducing greenhouse gas emissions as most of them usually come from the transport industry. Although EVs’ selling is facing some challenges due to the lack of trust in batteries and the fact that they are a bit expensive than conventional vehicles, their uptake is very close. Many studies have shown that many people will adopt electric vehicles in the next five years. This is because their prices would have decreased, and the automakers would have developed models with a long-mile range.

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