Electric vehicle startup Rivian gets $2.5 billion in added funding
Electric car startup Rivian said Monday it has completed a $ 1.3 billion investment round led by T. Rowe Price, including existing investors Amazon.com and Ford Motor Co.
The investment round, which also includes BlackRock Inc, is the fourth for Rivian this year. This positions the Plymouth, Michigan-based company as one of the best-funded players in the crowded EV market, where Tesla Inc is the most established player..
«This investment demonstrates confidence in our team, products, technology and strategy.», – said the head of Rivian R. Jay. Scaringe.
Rivian, considered the biggest competitor to Tesla’s new Cybertruck, claims its electric pickup can travel more than 400 miles on a single charge, carry nearly 1,800 pounds of payload, and can tow 11,000 more pounds. The most expensive version of the Cybertruck can carry 3,500 pounds and tow 14,000 pounds, traveling 500 miles on a single charge. The base model will have a range of 250 miles on a single charge…
Electric vehicles still represent only a small portion of the global automotive market. While Tesla is the best-known manufacturer, China and Europe are pushing carmakers to produce electric vehicles, and Ford, General Motors Co and others have announced plans to spend billions of dollars to develop cars..
Founded in 2009, Rivian plans to build an all-electric pickup truck, the R1T, and the accompanying R1S SUV in late 2020. Both models are based on «skateboard» Rivian, a chassis that combines an electric motor and batteries.
Rivian previously raised $ 2.2 billion from investors, according to the investor PitchBook website, and was valued at $ 5-7 billion.
The overall valuation of the company in connection with the latest investment round has not yet been determined.
Rivian said Monday that no new seats have been added as a result of the latest investment in the board of directors..
T. Rowe Price has a big stake in the automotive sector. The fund is a major shareholder in Tesla and has also invested in GM’s majority-owned Cruise division. T. Rowe Price, along with Amazon, also invested in the launch of self-driving software Aurora and UK online food delivery company Deliveroo.
«T. Rowe Price is delighted to invest in Rivian as it pushes the innovative frontier forward with its attractive sustainable transport solutions – for both consumers and businesses.», – commented T. Rowe spokesman Joe Fath.
Amazon, which deals with the auto industry, organized a $ 700 million investment round in Rivian in February. The e-commerce company also ordered 100,000 electric vehicles from Rivian for delivery. The first Amazon vans to be built at the former Mitsubishi Motors Corp plant in Normal, Illinois in 2021.
Amazon declined to comment on Monday.
Ford invested $ 500 million in Rivian in April and plans to help it start production in 2020.
«We want to retain a significant share of the ownership and future of this company», – Ford spokesman T.R. Reed said about the Rivian case.
Sources told Reuters in November that the battery-powered Lincoln SUV, due in mid-2022, will be the first Ford vehicle to be built on the Rivian platform..
Cox Automotive Inc, owner of the Autotrader car market and the Kelley Blue Book car valuation service, invested $ 350 million in Rivian in September.