Amazon invests in Tesla rival

A potential rival to Palo Alto’s 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. The automaker announced the new round of investment Friday, offering few details but saying it would remain independent.

Founded in 2009 by an MIT-trained engineer, R.J. Scaringe, 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 says its pickup will be able to go up to 400 miles on a full charge.

The deal is the latest example of how the auto industry is being reshaped by new technology and nimble companies that have raced ahead of many traditional carmakers.

While General Motors, Ford Motor and others are scrambling to introduce new electric vehicles, Tesla has become by far the leading seller of electric cars in the United States. Waymo, a division of Google’s parent company, Alphabet, is considered by some analysts to be the leading developer of autonomous vehicles.

“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.”

An Amazon spokeswoman declined to elaborate on the thinking behind the Rivian investment.

Since 2015, Amazon has been building out its own logistics network, one that is a “global, end-to-end network covering all transportation modalities,” Morgan Stanley described in a research note last month. And last week, Amazon made a “significant” investment in Aurora, a Palo Alto startup that is developing self-driving technology. Aurora is led by Chris Urmson, who previously headed Alphabet’s autonomous car effort.

At the Los Angeles show, Scaringe described the company’s pickup, the R1T, and its SUV, the R1S, as upscale vehicles that could be used for off-road adventures. They are intended to compete for motorists who buy pricey Land Rovers and Porsche SUVs.

Rivian’s vehicles are expected to sell for $68,000 or more.

Neal E. Boudette is a New York Times writer.