Electric Truck Maker Rivian Raises Another $2.5 Billion, Its Biggest Investment Yet

Andrew Cummings
July 11, 2020

The new round takes total investment in Rivian to at least $6 billion, including a $1.3 billion round in December led by T. Rowe Price and including Amazon, Ford and BlackRock, according to investor website Pitchbook.

Rivian's all-electric pickup and SUV are expected to launch early next year, while Amazon expects to have 10K of the vans in its corporate fleet by 2022.

Electric vehicle company Rivian announced Friday the close of a $2.5 billion funding round. This time, funding was led by financial firms like T. Row Price Associates (also a previous investor), Soros Fund Management, Fidelity Management and Research Company, Coatue, and Baron Capital Group. Advertisement The multibillion-dollar institutional investment may indicate considerable long-term faith in the company, but RJ Scaringe, Rivian's founder and CEO, told CNBC on Friday that the company now has no plans for an IPO.

It plans to release its first vehicles, the R1T pickup and R1S SUV, in 2021. The new funding for Rivian arrives with Nikola (NASDAQ:NKLA) soaring to a $20.5B market cap and Tesla (NASDAQ:TSLA) racing to a $259B market cap.

In 2019, Rivian closed several big investment deals with some of the largest companies in the world. -In September, Cox Automotive announced its $350 million investment in Rivian, complemented by plans to collaborate on logistics and service.

"We're focused on making sure that we deliver", Rivian's founder and CEO RJ Scaringe said to CNBC this week.

The company has a contract with Amazon to build 100,000 electric delivery vans starting next year at its factory, a former Mitsubishi plant in Normal, Illinois. The financing was led by funds and accounts advised by T. Rowe Price.

Why it matters: It's another sign that the Michigan-based company is very well-positioned among the suite of electric vehicle startups with vehicles heading to the market. About Rivian Rivian has developed and vertically integrated a connected electric platform that can be flexibly applied to a range of applications including the company's adventure products as well as B2B products such as the Amazon last mile delivery vans.

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