Rivian raises $2.5 billion in the pursuit of making the first all-electric pickup

August 13 03:42 2020
Rivian raises $2.5 billion in the pursuit of making the first all-electric pickup

Rivian is expected to be the first auto manufacturer to bring an all-electric pickup to market early 2021. While the company has no plans of listing its shares on the market, Rivian seems open to getting additional financing to support its plans to disrupt the EV market. In 2019, the company was able to raise over $2.8 billion from big brands, including Amazon, T. Rowe Price Associates, Cox Automotive, and Ford.

While the shares of other players in the EV market were surging, Robert “R.J.” Scaringe was busy raising $2.5 billion in fresh financing for his electric truck company Rivian. The company has been predicted to be among the first auto manufacturers to release an all-electric pickup to market early- to mid- next year – months, a move that could put it years ahead of its competitors.

We’re focused on making sure that we deliver,” Scaringe told CNBC prior to the company announcing its newest round of funding Friday. “We really value active humility and letting our actions speak louder than our words.”

T. Rowe Price Associates, a previous investor, led the newest investment round. Other participants are Soros Fund Management, Coatue, Fidelity Management and Research Company, and Baron Capital Group. Amazon and BlackRock, who are existing shareholders, also participated.

Scaringe came out in June to state that Rivian is not planning to go public for the foreseeable future. However, he mentioned that the company is “open” to additional financing to help support its “aggressive growth plans.”

We’re in a position where we’re well-capitalized to launch the products but we are rapidly expanding and growing and accelerating some of our future products,” he said. “We’re seeing demand being significantly higher than what we initially anticipated, which is leading us to capacitive for higher levels of volume.

According to Scaringe, Rivian remains “very selective” as regards to any potential future financing partners. The company has, however, been able to raise about $6 billion in funding so far. The company closed on a $1.3 billion funding round in December, following rounds that helped it to raise over $2.2 billion, Reuters reported at the time, citing data from Pitchbook.

In June, CNBC obtained correspondence regarding a funding round for Rivian. The statement revealed that the company was raising at least $2 billion with a pre-money valuation at or above $8 billion. However, Rivian came out to deny such claims.

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