Electric vehicle company Rivian is set to have a big year with a highly anticipated public offering and the rollout of its Rivian R1T, the first electric pickup truck to market in the U.S.
Here are two ways Rivian is setting itself up for success in a highly competitive field.
1. Approval In All 50 States: One area that has sparked a lot of debate over the years has been Tesla Inc (NASDAQ:TSLA) not being allowed to sell its vehicles in certain states.
Rivian is certified by federal regulators and will be able to deliver vehicles in all 50 states.
“Rivian vehicles are fully certified by NHTSA, EPA and CARB and are ready for sale in all 50 states,” the company said.
Tesla has faced hurdles in several states that have blocked it from selling the vehicles. Texas does not allow the sale of Tesla vehicles produced in the state. The Teslas have to be shipped out of Texas before they can be delivered back to state residents.
Michigan, which is home to many of the leading U.S. automakers, has fought against selling electric vehicles in the state other than Tesla.
InsideEVs points out Tesla has federal approval to sell its vehicles nationwide but some states have made their own rules to block Tesla.
Having the approval to sell in all 50 states is a big step for Rivian but. the company could still face state-by-state challenges. Given the company’s investment backing by Ford Motor Company (NYSE:F) and Amazon.com, Inc. (NASDAQ:AMZN), it may have less of a hard time than other electric vehicle companies.
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2. Free Charging: To lure customers to a new vehicle or electric vehicle, companies offer incentives and focus on pricing, mileage range and other items that are important.
Rivian is offering free charging for 12 months, which could help grab some customers who are worried about making the switch or concerned about the prices of electric vehicle charging.
Rivian will also include roadside assistance to members of the Rivian membership program. Other perks include community meetups, infotainment and different drive modes.
Membership will be free for 12 months and then shift to a pay model with no price announced yet from Rivian.
The program covers Rivian’s Adventure Network and Waypoint chargers, which will be powered by renewable energy. There are no Rivian public chargers available yet but the company has promised to install more than 10,000 by the end of 2023.
Lucid Group is offering three years of free charging via a partnership with Electrify America, a unit of Volkswagen AG (OTC:VWAGY).
What’s Next: Rivian has officially been the first company to bring an all-electric pickup truck to the U.S. market, beating the likes of Tesla and Ford.
Last year, bettors could place wagers on which company would deliver an electric pickup truck first. Rivian was listed as the favorite at odds of +150 compared to Tesla at +200 for the Cybertruck.
The Rivian R1T pickup starts at $67,500. The first deliveries are expected by the end of September. Each Rivian comes with a five-year, 60,000-mile general warranty and an eight-year, 175,000-mile battery warranty.
Rivian could be valued at $80 billion with an expected IPO raising between $5 billion and $8 billion.
Disclosure: Author is long LCID shares.