Venture Capital: Electric Vehicle Maker Rivian’s Monster Funding Round
Rivian just raised $1.3 billion from top-notch investors.
The humongous new raise, led by T Rowe Price, added $1.3 billion to Rivian’s coffers. It included existing investors Ford Motor and Amazon.com. BlackRock Inc also invested in the round, according to Fortune.
This raising follows on previous funding this year of $1.55 billion from Amazon ($700 million), Ford ($500 million), and Cox Automotive ($350 million). Moreover, in 2018, Rivian raised $450 million with backing from Saudi Arabia-based investment group Abdul Latif Jameel, Sumitomo Corp., and London’s Standard Chartered Bank.
However, the automaker has not revealed its aggregate funding to date, nor the valuation for its latest fundraise.
Founded in 2009, Rivian plans to launch an all-electric pickup truck, the R1T, and the R1S SUV, starting in late 2020. Pre-orders start at $69,000 for the R1T, and at $72,500 for the R1S. Both models are based on a Rivian-designed chassis that bundles an electric motor with batteries and controls. A variety of body styles can be built on the chassis or the so-called “skateboard.” Furthermore, the company’s vehicles are suitable for both on-road and off-road driving.
By 2021, Rivian is scheduled to start delivering on an order for 100,000 electric delivery vehicles from Amazon.
The company has R&D facilities across the globe, and a 2.6-million-square-foot manufacturing facility in Normal, Ill. The latter is a refurbished auto assembly plant acquired from Mitsubishi Motors.
“T. Rowe Price is excited to invest in Rivian as it moves the innovation frontier forward with its compelling sustainable transport solutions for both consumers and businesses,” said T. Rowe Price Growth Stock Fund portfolio manager Joe Fath.
“We want to maintain a meaningful value in the ownership and future of that company,” Ford spokesperson T.R. Reid said. Meanwhile, Ford’s first electric vehicle, a Lincoln SUV, will be based on Rivian’s chassis.
“This investment demonstrates confidence in our team, products, technology and strategy,” Rivian Chief Executive R.J. Scaringe said in a statement.
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