Rivian raises $2.5 billion ahead of electric truck launch

Rivian, the electric truck startup, said Friday it had closed a $2.5 billion private funding round, bringing its total capital raised to date to $10.5 billion.

Why it matters: The money will help fund the company's next phase of growth, including a second U.S. assembly plant that will also include battery cell production. Reuters first reported the planned facility on Thursday.

• The private financing comes as many other electric vehicle startups are funding growth by merging with publicly traded shell companies.

Details: Current backers, including Amazon’s Climate Pledge Fund, D1 Capital Partners, Ford Motor Company and funds and accounts advised by T. Rowe Price Associates, led the latest round.

• Third Point, Fidelity Management and Research Company, Dragoneer Investment Group and Coatue Management also participated.

What they're saying: “As we near the start of vehicle production, it’s vital that we keep looking forward and pushing through to Rivian’s next phase of growth,” said Rivian CEO RJ Scaringe.

• “This infusion of funds from trusted partners allows Rivian to scale new vehicle programs, expand our domestic facility footprint, and fuel international product rollout.”

What to watch: Rivian recently delayed the launch of its long-awaited R1T electric pickup truck and R1S SUV until this fall, blaming “cascading impacts of the pandemic,” especially a global shortage of semiconductor chips.