Rivian is developing two electric-battery consumer cars designed to be able to land off-road.
Photographer: Patrick T. Fallon / Bloomberg
Photographer: Patrick T. Fallon / Bloomberg
Rivian Automotive Inc., a subsidized electric truck startup Amazon.com Inc. and Ford Motor Co., is close to building a new round of funding worth around $ 25 billion, according to people familiar with the matter.
Several existing Rivian investors are taking part in the tour, which will raise several billion dollars, the people added, wanting not to be recognized because the deal is private.
Existing investors in the company include Amazon, T. Rowe Price Group Inc., BlackRock Inc., Soros Asset Management, Coatue, Fidelity Investments and Baron Capital Group.
Funding has not been finalized and details are subject to change.
A representative for Rivian said, “We are targeting the delivery of the R1T, R1S, and Amazon delivery vehicles in 2021. We are in regular contact with investors, and have no news to make at this time. . “
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Rivian is developing two battery-powered consumer cars designed to cover off-road terrain. The R1T is an electric construction that the company says is capable of driving more than 300 miles on a single toll and tow up to 11,000 pounds. The R1S is a sports utility vehicle built on the same platform.
Race by Tesla
The new money was added to the $ 6 billion Rivian has raised to date, making it one of the most capitalized electric vehicle manufacturers.
The startup was founded in 2009 by RJ Scaringe, a graduate of the Massachusetts Institute of Technology with a doctorate in mechanical engineering, who is a senior executive at Rivian.
Delivery of the first batch of pickups, which Rivian has not measured but said they have sold out, is expected to begin in June. If it sticks to that timeline, Rivian has a shot at becoming the first company to bring battery electric construction – one of the expected vehicle segments – to the U.S. market.
The R1T faces competition from both new and established manufacturers, and is targeting an untested market. While pickups are best-selling books in the U.S., it’s not clear what the demand is for battery-powered trucks.
Tesla Inc., the owner in the EV market, also plans to bring an electric battery builder to market before the end of this year. The company led by Elon Musk plans to build the future ‘Cybertruck’ at a plant they are building in Austin, Texas.
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Rivian has more than 3,000 employees divided between sites in California, Michigan and a production facility in Normal, Illinois.
Rivian is also developing 100,000 delivery vans for Amazon.
– Supported by Gabrielle Coppola
(Updates with competition concerns in the 10th paragraph)