Rivian Raises $2.5B in New Funding - Electric Vehicle News

Rivian Secures $2.5 Billion in New Funding

Rivian announced on Friday the successful completion of a $2.5 billion private funding round. The investment was spearheaded by prominent entities including Amazon’s Climate Pledge Fund, D1 Capital Partners, Ford Motor, and funds managed by T. Rowe Price Associates Inc.

Investor Participation

Several other firms contributed to this funding round. These include Third Point, Fidelity Management and Research Company, Dragoneer Investment Group, and Coatue, as confirmed by Rivian representatives.

“With vehicle production drawing near, maintaining forward momentum and progressing to Rivian’s subsequent growth stage is paramount,” stated RJ Scaringe, CEO of Rivian. “This capital injection from our valued partners will enable Rivian to broaden its vehicle program scope, augment our facilities within the United States, and facilitate the global launch of our products.”

Strategic Investment Perspective

Dan Sundheim, founder of D1 Capital Partners, expressed his firm’s enthusiasm regarding the increased investment in Rivian. He highlighted the company’s approach to a pivotal moment in its commercialization, anticipating the delivery of products that will greatly appeal to customers.

To date, Rivian has accumulated approximately $10.5 billion in funding. The company has not publicly disclosed its post-money valuation following this latest round.

Recent Growth and Expansion

Currently employing 7,000 individuals, Rivian is preparing for the delivery of its R1T pickup truck, scheduled for September. The company’s previous funding round, finalized in January, secured $2.65 billion from existing investors such as T. Rowe Price Associates Inc., Fidelity Management and Research Company, Amazon’s Climate Pledge Fund, Coatue, and D1 Capital Partners.

New investors also participated in the January round, which resulted in a valuation of $27.6 billion for Rivian, according to a source familiar with the details shared with TechCrunch.

Production Updates and Future Plans

This funding announcement follows Rivian’s recent confirmation of plans to establish a second manufacturing facility within the U.S. It also comes after the company’s decision to postpone the delivery of both the R1T truck and R1S SUV from the initial summer timeframe to September.

These delays are attributed to production challenges stemming from the ongoing global semiconductor chip shortage and the broader “cascading impacts of the pandemic.”