Jul 23, 2021 - Technology

Rivian raises $2.5 billion ahead of electric truck launch

Joann Muller

Image of a blue Rivian R1T electric truck on a dirt road in the woods. — Rivian R1T electric truck is delayed until September. Photo: Rivian

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.

Add Axios on Google

Rivian raises $2.5 billion ahead of electric truck launch

What to read next