Amazon.com and General Motors are in talks to invest in Rivian Automotive LLC in a deal that would value the US electric pickup truck manufacturer at between $1 billion and $2 billion, people familiar with the matter told Reuters news agency on Tuesday.
The deal would give Amazon and GM minority stakes in Rivian, the sources said. It would be a major boost for the Plymouth, Michigan-based startup, which aspires to be the first carmaker to the US consumer market with an electric pickup.
If the negotiations conclude successfully, a deal could be announced as early as this month, the sources said, asking not to be identified because the matter is confidential. There is always a chance that deal talks fall through, the sources cautioned.
“We admire Rivian’s contribution to a future of zero emissions and an all-electric future,” GM said in an emailed statement, declining to specifically comment on any talks with Rivian.
Amazon and Rivian declined comment.
The Rivian deal would come as its much larger electric car manufacturing rival, Tesla, struggles to stabilise production and deliver consistent profits as it rolls out its flagship Model 3 sedan.
Tesla CEO Elon Musk told investors last August that an electric pickup is “probably my personal favorite for the next product” from the company, though he has spoken only in general about a potential launch, saying that it would happen “right after” Tesla’s Model Y, which the company has targeted to start production in 2020.