Amazon invests $700M in Rivian, a Tesla rival

A potential rival to Tesla in electric cars just got a big boost from Amazon.

The online retail giant is leading a $700 million investment in Rivian, a Michigan company that is developing a battery-powered pickup truck and an electric sport utility vehicle.

Rivian announced the new round of investment on Friday, offering few details but saying it would remain independent.

Founded in 2009 by an MITtrained engineer, R.J. Scaringe, Rivian previously raised about $500 million from Sumitomo, a Japanese conglomerate known for its tire division, and Abdul Latif Jameel, a Saudi industrial group. Those earlier investors also took part in the new investment round, though the companies did not provide details about how much money they put in.

“We’re inspired by Rivian’s vision for the future of electric transportation,” Jeff Wilke, Amazon’s chief executive for worldwide consumer, said in a statement.

“R.J. has built an impressive organization, with a product portfolio and technology to match. We’re thrilled to invest in such an innovative company.”

Rivian first showed its truck and SUV at the Los Angeles Auto Show in November. The key feature of each is a chassis that is shaped like a skateboard and includes all the components that propel the vehicles — a large battery pack, axles, suspension, cooling system and four electric motors. The company claims its pickup, the R1T, and its SUV, the R1S, will be able to go up to 400 miles on a full charge.

Both are expected to sell for $68,000 or more. In Los Angeles, Scaringe described them as upscale vehicles that can be used for off-road adventures.

They are intended to compete for motorists who buy pricey Land Rovers and Porsche SUVs.