As Tesla and Nikola tout upcoming electric pickup trucks, Rivian continues its goliath fundraising efforts.
Rivian still hasn't started production of its R1T or R1S, though it has a number of working prototypes out testing. The startup automaker has been lurking for years and has plans to bring an all-electric pickup truck and three-row SUV to market next year. Rivian has come into the mainstream picture more recently and has since proven it knows how to rack up a multitude of funding and support.
In the sea of automotive startups, and especially EV startups, Rivian is a standout. Not only does it have working prototypes that appear to be production-ready, but it also owns a former automotive plant and has received major investments for the like of Ford and Amazon, among others. Now, the company has just closed a new funding round totaling a whopping $2.5 billion in funding, with investments led by T. Rowe Price.
Rivian had already received $700 million from Amazon, $500 million from Ford, and $350 million from Cox Automotive. In addition, its December funding round resulted in another $1.3 billion. According to CNBC, all-in-all, Rivian raised $2.85 billion in 2019 alone.
Rivian CEO RJ Scaringe reiterated that the automaker has no immediate plans to go public. At this point, the goal is to ensure the company is ready for a successful launch in 2021. With the Tesla Cybertruck on the way in the near future, as well as Nikola touting its Badger fuel-cell and electric pickup truck, it's high-time for Rivian to get the ball rolling, and this new round of funding will certainly help.
Scaringe told CNBC:
“We’re focused on making sure that we deliver. We really value active humility and letting our actions speak louder than our words.”
"We’re in a position where we’re well-capitalized to launch the products but we are rapidly expanding and growing and accelerating some of our future products. We’re seeing demand being significantly higher than what we initially anticipated, which is leading us to capacitive for higher levels of volume.”
We can only hope Rivian can stick to its timeline and really let its actions speak louder than its words. You can find all the details about this new round of funding in the press release below.
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Rivian announces $2.5 billion investment round
July 10, 2020-- Rivian has closed an investment round of $2.5 billion. The financing was led by funds and accounts advised by T. Rowe Price Associates, Inc.
“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,” said Joe Fath, portfolio manager of T. Rowe Price Growth Stock Fund.
Participants in this investment round include Soros Fund Management LLC, Coatue, Fidelity Management and Research Company, and Baron Capital Group. Existing shareholders Amazon and funds managed by BlackRock also participated.
“We are focused on the launch of our R1T, R1S and Amazon delivery vehicles. 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. We are grateful for the strong investor support that helps enable us to focus on execution of our products,” said Rivian Founder and CEO RJ Scaringe.
No new board seats have been added, and additional details about this investment are not being disclosed at this time.
The investment announcement is Rivian’s first in 2020.
-In February, Rivian announced a $700 million funding round led by Amazon.
-In April, Rivian announced that Ford Motor Company invested $500 million and that the companies would collaborate on a future program.
-In September, Cox Automotive announced its $350 million investment in Rivian, complemented by plans to collaborate on logistics and service.
-In late September, Rivian announced it was developing an electric delivery van for Amazon utilizing Rivian’s skateboard platform and that 100,000 of these vans had been ordered with deliveries starting in 2021.
-In December, Rivian closed an investment round of $1.3 billion. The financing was led by funds and accounts advised by T. Rowe Price Associates, Inc. with additional participation from Amazon, Ford Motor Company and funds managed by BlackRock.
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. The company’s launch products, the R1T and R1S, deliver up to 400+ miles of range and provide an unmatched combination of performance, off-road capability and utility. These vehicles use the company’s flexible skateboard platform and will be produced at Rivian’s manufacturing plant in Normal, Ill., with customer deliveries expected to begin in 2021. Learn more about our company and products at rivian.com.