Venture Capital: Electric Vehicle Startup Rivian Raises $2.5B

July 13, 2020 | Latest News, News, Venture Capital

The new funds will be crucial to Rivian’s product launches scheduled for 2021.

Funds and accounts advised by T. Rowe Price Associates, Inc. led an investment round worth $2.5 billion in electric vehicle maker Rivian. Participants in this investment round include Soros Fund Management LLC, Coatue, Fidelity Management and Research Company, and Baron Capital Group. Existing shareholders Amazon (NASDAQ: AMZN)  and funds managed by BlackRock (NYSE: BLK) also participated.  (evertiq)

In previous funding rounds, Rivian raised an aggregate amount of $3.1 billion, according to CrunchBase.

Its most recent fundraising was $1.3 billion in December 2019.

Rivian to launch three vehicles in 2021

The company is under contract to deliver 100,000 electric delivery vans to Amazon starting next year. These vans will be manufactured at its factory in Normal, Illinois, a former Mitsubishi plant purchased for $16 million in 2017. Rivian is spending over $750 million to refurbish and equip the facility for production in 2021.

The company is also planning to launch an SUV and a pick-up truck next year.

“We are focused on the launch of our R1T, R1S, and Amazon delivery vehicles,” said Rivian Founder and CEO RJ Scaringe in a statement. “With all three launches occurring in 2021, our teams are working hard to ensure our vehicles, supply chain and production systems are ready for a robust production ramp-up.”

Rivian has developed an electric skateboard platform that can serve as the basis for a diverse range of vehicles. These include the delivery vehicles promised for last-mile deliveries to Amazon (which Rivian describes as “B2B vehicles”) and “adventure” products such as the R1T pickup and R1S SUV. The adventure vehicles deliver up to 400+ miles of range.

“We are excited to continue this journey with Rivian’s innovative and talented team as they now prepare to deliver their groundbreaking products that help shift to a carbon-neutral planet,” says Joe Fath, portfolio manager of T. Rowe Price Growth Stock Fund.

According to a CNBC report, Rivian is already accepting pre-orders for its adventure vehicles and those include $1,000 refundable deposits.

Related Story: Electric Vehicle Maker Rivian’s Monster Funding Round                                                  

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