Rivian charges up, Irvine jobs to benefit – Irvine Standard

Rivian, the Irvine-based company known for its sleekly designed “electric adventure vehicles,” got great news in June when Volkswagen pledged to invest $5 billion in the company.

It’s also good news for Irvine, which in recent years has increasingly drawn EV startups and larger companies, including Neuron EV (trucks), Karma Automotive (luxury cars), Enevate (batteries) and Alpha Motor Corp. (utility vehicles). Experts predicted that the Rivian-VW joint venture would lead to more well-paying jobs at Rivian as well as inspire traditional automakers to look to nimble startups to help them innovate in the EV market.

“Typically this is a pattern we see across industries,” says Michael Imerman, who runs the master of finance program at the Paul Merage School of Business at UCI. “We see one of these big deals, and it sets off a chain reaction where others say, ‘Oh, this is feasible; let’s see if we can put some resources in if it helps us become more competitive.’”

In the shorter term, Imerman says, “Rivian will use some of this money to increase its own innovation in its software, which will create a lot of well-paying, white-collar jobs right in our backyard.”

Rivian moved its headquarters and most of its operations to Irvine in 2020. The company’s vehicles have won raves from reviewers. It also makes delivery vans for Amazon.

In recent years, Rivian has had to manage a range of challenges from significant supply-chain issues to a softening of the EV market. The infusion from VW sets Rivian up for success going forward as falling battery costs, increasing competition and federal tax credits make EVs competitive with gas-powered vehicles. Some experts predict EV sales will quadruple by 2030.

“This is exciting!” Rivian founder and CEO R.J. Scaringe tweeted, touting his hopes for access to VW’s global market, as Rivian’s stock surged nearly 30%.

To get a closer look at Rivian, stop by the historic South Coast Theater in Laguna Beach, which the company spent three years restoring to make a flagship location, showroom and community space, or visit rivian.com.