Rivian R1T electric truck
Electric vehicle startup Rivian announced on Friday that it has completed a $ 2.5 billion round of investment managed by funds and accounts advised by T. Rowe Price Associates when the company decided to join Production of a fully electric pickup and SUV is approaching.
Other participants in the round were Soros Fund Management, Coatue, Fidelity Management and Research Company and the Baron Capital Group. Existing shareholders Amazon and funds managed by BlackRock also participated.
Funding is provided as the company continues to renovate a former Mitsubishi plant in Normal, Illinois to produce its vehicles and a range of electric vehicles. Amazon pre-ordered 100,000 vans for its delivery fleet last year.
In June, CNBC received correspondence on a financing round for Rivian. The company raised at least $ 2 billion on a pre-cash valuation of $ 8 billion or more. At the time, Rivian denied that they were collecting money.
"We often receive unsolicited investment offers from institutions and individual investors," said Amy Mast, PR director at Rivian, in an email on June 9. "We heard this rumor ourselves – it's categorically wrong. If we publish this, a rumor will spread that is simply not true."
Mast declined to comment on her comments on Friday.
More recently CEO and founder Robert "R.J." Scaringe told CNBC that the company was "open" to additional funding to support its "aggressive growth plans".
The potential Tesla competitor raised $ 2.85 billion last year from Amazon, Cox Automotive, T. Rowe Price Associates and Ford Motor, among others. Rivian raised $ 1.3 billion in December, the final round of funding and the largest fundraising event last year.
Despite the corona virus and the ongoing recession, investors have shown great interest in electric car manufacturers. Nikola Motor, which plans to manufacture electric trucks, rose last month after going public through a reverse merger. The market valuation corresponds to that of Ford, although no revenue is expected until 2021.
Rivian is expected to be among the first, if not the first, to launch an all-electric pickup in the early to mid-2021 – possibly years before its competitors like Nikola, Tesla, and General Motors.
Rivian is taking pre-orders for its all-electric pickup and SUV, which includes a $ 1,000 refundable deposit.
Rivian, like Tesla, plans to sell its vehicles directly to consumers, bypassing franchisees used by "traditional" automakers like GM and Ford.