Rivian secures USD 2.65 billion months before its first vehicle launch

Electric vehicle startup, Rivian, backed by Ford Motor Co. and Amazon.com Inc., has reportedly announced an investment round of USD 2.65 billion led by T. Rowe Price, months before its first vehicle launch.

Sources with knowledge of the matter stated that the company’s valuation increased to USD 27.6 billion after this latest investment. Previously, Rivian had raised a total of USD 8 billion in 2019.

CEO R.J. Scaringe, reportedly stated that 2021 is likely to be of great significance for the company as they are launching the Amazon commercial delivery vehicles, along with R1S (SUV), and R1T (pickup).

Rivian is planning to begin delivery of these SUVs in August 2021, whereas those of pickups would start ahead in June. Launch editions of the vehicles are priced at USD 77,500 and USD 75,000, respectively, with a 300-mile (480 km) driving range for both vehicles.

Sources confirmed that Rivian had received an order of 100,00 electric vans from Amazon. The production of these vans will go live at the company’s factory in Normal, Illinois, in late 2021, with all deliveries to be fulfilled by 2024.

The funding round also included participation from D1 Capital Partners, Coatue, Amazon’s Climate pledge Fund, Fidelity Management, and Research Company, as well as various other existing and new investors.

Last July, T. Rowe Price had made headlines by funding USD 2.5 billion into the startup. Other previous investors in Rivian are Saudi auto distributor Abdul Latif Jameel Co. (ALJ), BlackRock, and Soros Fund Management.

As the company charts into the untested market for electric trucks, several competitors are lining up. In this regard, the EV giant, Tesla, reportedly stated that its Cybertruck deliveries could start as soon as the end of 2021, whereas General Motors Co. will start manufacturing its EV Hummer pick up this fall, sources cited.

Source Credit –

https://www.reuters.com/article/us-rivian-funding/electric-vehicle-startup-rivian-adds-2-65-billion-investment-led-by-t-rowe-price-idUSKBN29O1WJ