Amazon-Backed Rivian in Talks for Texas Factory

Transcript:

Kailey Leinz: Amazon backed Electric Vehicle Startup Rivian is in talks to invest at least five billion dollars to build a factory near Fort Worth, Texas. Bloomberg has learned the factory would be designed to produce 200,000 vehicles a year and would create at least 7,500 jobs. For more, we’re joined now by Bloomberg’s Ed Ludlow. So Ed, this isn’t necessarily a done deal yet. They’re looking at other sites as well.

Ed Ludlow: Right, a number of sites, number of states, number of cities still in the running, but according to my sources, Texas has become the front runner. Rivian was looking at a site potentially in Arizona. It was one that the company and its CEO, R.J. Scavenge, really liked. But with time, they had some concerns that came up around infrastructure and some environmental concerns. So now I’m hearing that this offer from the city of Fort Worth is competitive and the company is really considering it. But these things take time. The incentives fall through, they’re subject to votes by local lawmakers. So anything could happen still.

Kailey Leinz: And on the Texas side of the equation – forget the Rivian side – what kind of incentives are they offering to this company?

Ed Ludlow: Yes, you start with the city. The city of Fort Worth is offering about $440,000,000 worth of grants and tax exemptions or tax abatement. And then as part of that process, if they proceed, they would nominate the Rivian project for more tax incentives from the state of Texas, get the county that Fort Worth is based in, Tarrant County, involved as well. So when all is said and done it’s quite a hefty package. But remember, Rivian has to put something on the table as well. As you said, they’re committing to invest a minimum of five billion dollars into real estate development, construction, and hire a minimum of 7,500 jobs, which is incredible considering they haven’t even built a single car yet in their existing factory.

Kailey Leinz: Well yeah, I was going to say, Rivian having to put something on the table here. If they haven’t delivered cars yet, is it surprising that they’re now looking for a second site?

Ed Ludlow: It’s a little surprising. You might remember I broke the story earlier in the year that they were already looking for a factory in Europe, possibly mainland Europe or the UK. And we give Rivian such a lot of reputation and kudos because of the money they’ve raised – 10.5 billion dollars from big-name investors, they have this backing from Amazon. But at the end of the day, they’ve delayed production and the launch of their debut vehicles more than once because of COVID, because of supply chain disruptions. They haven’t proven anything yet until they get that into production and start delivering cars. And what I’m hearing is there’s still a little way off that. And if they want to take on Tesla, they want to be a big player in the EV market, as we learned from Tesla in 2018, it’s really hard to get into zero production and produce these things in volume.

More stories like this are available on bloomberg.com

©2021 Bloomberg L.P.

Follow us on social media for the latest updates in B2B!
Twitter – @MarketScale
Facebook – facebook.com/marketscale
LinkedIn – linkedin.com/company/marketscale

Follow us on social media for the latest updates in B2B!

Image

Latest

Breaking the Cycle and Inspiring Others
July 23, 2024

Nowadays, the traditional path to education is being questioned more than ever and there are numerous stories that provide a beacon of hope for those considering alternative routes. As the number of adults without a high school diploma reaches nearly 22 million in the United States, the importance of understanding and embracing non-traditional education…

Read More
School Safety and Regulatory Compliance
Approaching Safety and Regulatory Compliance with Intent and Purpose
July 23, 2024

In this episode of School Safety Today by Raptor Technologies Michelle Dawn Mooney sat down with special guest, Carrie Mockler, the Vice President of Operations at PublicSchoolWORKS, a Raptor Technologies company. PublicSchoolWORKS is a fully automated, all-in-one learning management system for online training for school staff and a comprehensive risk management program. Key Takeaways: •…

Read More
The Power of Self-Compassion in Leadership and Cognitive Diversity Can Transform Workplaces
July 23, 2024

Mental health and a sense of belonging are critical issues in today’s workplaces. So much that it is essential to practice self-compassion and form a better understanding of cognitive diversity. Leaders today must navigate the complexities of fostering connection and reducing isolation among their teams. Recent studies indicate that 40 percent of employees feel…

Read More
Knox Kronenberg
Passion, Nature, and Fine Art Photography with Knox Kronenberg
July 23, 2024

In the ever-evolving world of fine art photography, capturing the intersection of the old and the new is both a challenge and an art form in itself. Knox Kronenberg, a prominent photographer based in Austin, Texas, embodies this intersection through his work, which uniquely blends historical elements with modern contexts. As technology advances and…

Read More