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Amazon, GM may buy into electric truck startup: sources

Credit: Reuters Studio
Published on February 13, 2019 - Duration: 02:29s

Amazon, GM may buy into electric truck startup: sources

Amazon and General Motors are in talks to invest in electric truck startup Rivian in a deal that would value the company at between $1 blillion and $2 billion, sources tell Reuters.

Ryan Brooks reports.

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Amazon, GM may buy into electric truck startup: sources

GM and Amazon may soon inject serious money into a startup- that wants to be Tesla for pickup trucks.

Rivian is a Michigan company that only unveiled concepts for its trucks last November.

Now sources tell Reuters Amazon and GM are talking about taking a stake in a deal valuing Rivian at $1 to $2 billion dollars.

So far GM hasn't made any moves toward electric pickups, but the deal would come after Tesla CEO Elon Musk told investors last August: Electric pickups were his 'personal favorite' for that company's next vehicle after the Model Y, slated for production in 2020.

As for Amazon, Reuters Jeffrey Dastin in San Fracisco says the company wants any deal that helps packages hit your doorstep fast.

(SOUNDBITE) (English) REUTERS CORRESPONDENT JEFFREY DASTIN SAYING: "In years past, it had trouble around the Christmas holiday, some goods that didn't arrive in time for Christmas, and that is not really good in terms of building trust with consumers, and since that point, its decided its going to do whatever it takes to be reliable.

So that has meant agreements with cargo airlines, that has meant this past year its secured 20,000 vans with, from Mercedes so it can have delivery contractors you know more easily on their side of the equation deliver goods to shoppers.

Its delivery costs have soared year and year again and essentially a major cost of delivery of course is gas, so if if a company can do shipping for Amazon, strictly with electric vehicles, you know that seems like it would make a lot of sense.

If Amazon does reach a deal with Rivian it would be quite interesting because Amazon helped fundraise 530 million dollars, it was announced this month, for a self-driving car startup called Aurora, and its actually been quite rare for Amazon to invest in startups like this around driving technology.

It's made investments in voice technology, you know around Alexa and things like that, but driving seems to be from the last investment and potentially this one, a new area of focus." Sources told Reuters a deal for a stake in Rivian could come as soon as this month.

Rivian plans to begin selling its R1T the pickup it debuted in November in autumn 2020.

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