Rivian R1T electrical truck
Electric car startup Rivian on Friday stated it closed a $2.5 billion investment round led by funds and accounts suggested by T. Rowe Price Associates as the corporate strikes nearer to manufacturing of an all-electric pickup and SUV.
Other members within the round included Soros Fund Management, Coatue, Fidelity Management and Research Company in addition to Baron Capital Group. Existing shareholders Amazon and funds managed by BlackRock additionally participated.
The funding comes as the corporate continues to renovate a former Mitsubishi plant in Normal, Illinois, to supply its autos in addition to a line of EV vans. Amazon preordered 100,000 of the vans final yr for its supply fleet.
In June, CNBC obtained correspondence relating to a funding round for Rivian, saying the corporate was elevating at the very least $2 billion with a pre-money valuation at or above $8 billion. At the time, Rivian denied they have been elevating cash.
“We often receive unsolicited investment offers from institutions and individual investors,” Amy Mast, public relations director at Rivian, stated in a June 9 e mail. “We have heard this rumor ourselves — it is categorically false. Publishing this would be spreading a rumor that is simply not true.”
Mast declined to touch upon her remarks Friday.
More not too long ago, CEO and founder Robert “R.J.” Scaringe instructed CNBC the corporate was “open” to extra financing to assist help its “aggressive growth plans.”
The would-be Tesla competitor raised $2.85 billion final yr from Amazon, Cox Automotive, T. Rowe Price Associates and Ford Motor, amongst others. Rivian raised $1.3 billion in December, its most up-to-date funding round and largest capital increase final yr.
Despite the coronavirus and ongoing recession, traders have proven excessive curiosity in electrical automakers. Shares of Nikola Motor, which plans to make electrical vans, surged final month after going public via a reverse merger. Its market valuation is in step with Ford, despite the fact that it would not count on to generate income till 2021.
Rivian is predicted to be among the many first, if not the primary, to deliver an all-electric pickup to market by early to mid-2021 – probably years forward of its rivals, together with Nikola, Tesla and General Motors.
Rivian is taking preorders for its all-electric pickup and SUV that embrace $1,000 refundable deposits.
Rivian, like Tesla, plans to promote its autos on to shoppers, bypassing franchised sellers which can be utilized by “traditional” automakers reminiscent of GM and Ford.