Electric vehicle startup Rivian lands $2.5 billion in new funding
- Ben Geman, author of Axios Generate
Rivian's R1T pickup. Photo: Michael Brochstein/SOPA Images/LightRocket via Getty Images
Electric vehicle company Rivian announced Friday the close of a $2.5 billion funding round.
Why it matters: It's another sign that the Michigan-based company is very well-positioned among the suite of electric vehicle startups with vehicles heading to the market.
- The company is planning to soon launch production of an electric SUV and pickup, and also has a deal with Amazon to make a large fleet of electric delivery vehicles.
Driving the news: The funding was led by "funds and accounts advised by T. Rowe Price Associates, Inc," Rivian said.
- Backers include Soros Fund Management LLC, Coatue, Fidelity Management and Research Company, and Baron Capital Group, Rivian said.
- Existing shareholders Amazon and BlackRock-managed funds also took part.
What’s next: Rivian plans to launch production of its R1T pickup, R1S SUV and the vehicles for Amazon next year at its manufacturing plant in Normal, Illinois.
- Amazon plans to buy 100,000 delivery vehicles from Rivian and hopes to have 10,000 operating as soon as 2022.
The bottom line, via Axios transportation reporter Joann Muller: Rivian is biting off an extraordinary series of manufacturing challenges all at once for a startup that has never built a vehicle. Even experienced automakers struggle to launch new vehicles smoothly.