Amazon-backed Tesla rival Rivian picks up $2.5bn in single round
Rivian, an electric truck-making startup backed by Amazon and Ford, has raised $2.5bn in a fresh funding round led by T. Rowe Price.
The new round takes the total investment in Rivian to at least $6bn, including a $1.3bn round in December also led by T. Rowe Price.
Rivian’s latest funding round was supported by Soros Fund Management, Coatue Management, Fidelity Management and Research, and Baron Capital Group. Amazon and Blackrock also participated.
Rivian said it was raising the funds to boost its war chest as part of its aim to be the first manufacturer to bring an electric pickup truck to market.
The tech firm revealed last year it was developing an electric delivery van for Amazon using its skateboard platform. Amazon has ordered 100,000 of these vans, with deliveries set to begin in 2021.
Amazon also recently acquired self-driving startup Zoox for a reported $1bn, as it seeks to innovate its logistics division.
Rivian said it has three models expected to come to market next year. Production for two of the models — the R1T and R1S — was supposed to start earlier this year.
“We are focused on the launch of our R1T, R1S and Amazon delivery vehicles,” said Rivian chief executive R.J. Scaringe.
“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.”
The deal comes as rival electric carmaker Tesla, which released its Cybertruck model last year, is set to enter the S&P 500 index if it reports a quarterly profit later this month.
It would mark Tesla’s fourth consecutive quarterly profit, a key requirement for addition to the index.
At a market capitalisation of $250bn, Tesla would be among the most valuable companies ever added to the S&P 500, larger than 95 per cent of the index’s existing members. It would have a major impact on investment funds that track the index.