Rivian Raises $2.65B to Fuel Electric Pickup Production

Rivian has secured $2.65 billion in funding as it approaches the start of production for its all-electric pickup truck this summer.

This funding round was spearheaded by investment vehicles overseen by T. Rowe Price Associates Inc., and also featured contributions from Fidelity Management and Research Company, Amazon’s Climate Pledge Fund, Coatue, and D1 Capital Partners, alongside various current and new investors.

A source with knowledge of the investment details indicates that Rivian’s current valuation stands at $27.6 billion.

This influx of capital arrives at a crucial moment for Rivian, as the company is actively engaged in the design, development, manufacturing, and distribution of two consumer vehicles – the R1T pickup truck and the R1S SUV. Simultaneously, they are expanding their electric vehicle charging infrastructure and preparing to fulfill a substantial order for 100,000 electric delivery vans for Amazon.

“The backing and trust of our investors allows us to concentrate on launching these vehicles while also preparing our company for its subsequent phase of expansion,” stated Rivian’s founder and CEO, RJ Scaringe.

This recent investment builds upon a period of significant financial activity spanning the past two years, which gained momentum following the unveiling of the company’s electric SUV and pickup truck at the 2018 LA Auto Show.

Shortly after this debut, Rivian announced a $700 million funding round with Amazon as the lead investor. Further investments followed, including a $500 million contribution from Ford – accompanied by plans for collaborative work on a future electric vehicle program – and a $350 million investment from Cox Automotive in September 2019. The company concluded the year by announcing a $1.3 billion round, led by funds and accounts advised by T. Rowe Price Associates, Inc., with additional participation from Amazon, Ford Motor Company, and BlackRock-managed funds.

The flow of investment continued into 2020. In July, Rivian announced it had raised $2.5 billion in a round again led by funds and accounts advised by T. Rowe Price Associates Inc. Joining the round were new investors Soros Fund Management LLC, Coatue, Fidelity Management and Research Company, and Baron Capital Group, in addition to existing shareholders Amazon and BlackRock.

To date, Rivian has amassed $8 billion in funding since the beginning of 2019.

Rivian’s factory in Normal, Illinois. Image Credits: Rivian

Rivian has been actively utilizing this capital. The company has invested over $1 billion in its manufacturing facility located in Normal, Illinois. This factory, formerly used to produce the Mitsubishi Eclipse through a partnership between Mitsubishi and Chrysler Corporation, has undergone a complete modernization and expansion.

According to the company, the renovation of the 3.5 million-square-foot facility is progressing as planned, though it is not yet finished. A pilot production line is currently operational, producing validation models of the R1T pickup truck on a daily basis.

The factory will also be responsible for producing the delivery vans intended for Amazon, with the first deliveries scheduled for late 2021.