Rivian raises $2.5 billion as it pushes to bring its electric RT1 pickup, R1S SUV to market – ProWellTech
Rivian, The electric vehicle company that aims to become the first to launch an electric vehicle pickup truck raised $ 2.5 billion in a round driven by funds and accounts recommended by T. Rowe Price Associates Inc.
New investors Soros Fund Management LLC, Coatue, Fidelity Management and Research Company and Baron Capital Group also participated. Existing Amazon shareholders and funds managed by BlackRock also joined the round. No new seats have been added on board.
This is by far the biggest round that Rivian has collected to date when the company and its founder and CEO RJ Scaringe shunned public markets and instead turned to strategic funds and other private capital investors. The round follows an active 2019 for the company which brought in $ 2.85 billion of funds through a series of investments. Rivian essentially hit the same mark in one fell swoop this time.
Rivian announced an Amazon-led $ 700 million financing round in February 2019. Further business and investment will follow, including a $ 500 million investment by Ford – along with a promise to collaborate on a future EV program – and a $ 350 million investment by Cox Automotive in September. The company closed the year with an announcement that it had raised a $ 1.3 billion round led by funds and accounts recommended by T. Rowe Price Associates, Inc. with the additional participation of Amazon, Ford Motor Company and funds managed by BlackRock.
The company also announced in 2019 that it was developing an electric van for Amazon using its skateboard platform. Amazon has ordered 100,000 of these vans, with deliveries starting in 2021.
The company makes an intense journey that will last until 2021. Rivian is preparing its factory in Normal, Illinois, to assemble its R1T electric pickup and R1S SUV, as well as begin to fulfill its order with Amazon to deliver electric vans.
All three of these products are expected to arrive on the market – or directly to Amazon, for the order of vans – in 2021. The R1T and R1S were expected to go into production in 2020, but were delayed due to the COVID pandemic- 19, the company previously said.
“We are focused on launching our delivery vehicles R1T, R1S and Amazon. With all three launches occurring in 2021, our teams are working hard to ensure that our vehicles, supply chain and production systems are ready for a robust increase in production. We are grateful for the strong investor support that helps us focus on running our products, “Scaringe said in a statement.
Rivian had its challenges. Rivian’s collaboration with Ford has been suspended and COVID-19 has forced her to stop work in her factory, delaying her RT1 and RS1 projects. Earlier this year, Lincoln Motor, the luxury brand under Ford, canceled plans to build a completely new electric vehicle based on Rivian’s skateboard platform. Rivian and Ford then said it was a mutual decision based on the current environment, which meant that the COVID-19 pandemic was the root cause. The companies are still planning to co-develop a vehicle in the future.