Rivian today announced a $1.3 billion fundraising round led by T. Rowe Price, with participation from existing investors including Amazon and Ford:
It was the fourth investment in Rivian this year and the company’s largest funding round so far. Amazon and Ford Motor, which were already Rivian investors, also took part in the latest round.The New York Times
Capital Raises: 4
Cars Sold: 0
Starting a car company is extremely tough. Rivian stands apart from other EV startups with its strong support and backing by Amazon and Ford, as well as large institutional investors. Of every EV startup I know of worldwide, Rivian looks the most promising.
But that doesn’t mean this isn’t going to be extremely tough: If Rivians first vehicles don’t take off, they could have a big problem on their hands. Luckily, large vehicle orders from Amazon and partnerships with Ford should help reduce the risk that Rivian ends up with a giant factory and no customers.
The funding is a vote of confidence in Rivian, which expects to start delivering a truck and a sport utility vehicle next year. But it also underscores the company’s need for capital. Investments in the company in 2019 have raised $2.85 billion.The New York Times
They’ll probably need to raise another $10 billion to bring their vehicles to market with adequate delivery and service and charging infrastructure.
This investment demonstrates confidence in our team, products, technology and strategy — we are extremely excited to have the support from such strong shareholdersR. J. Scaringe, Rivian Founder and CEO
It is a pretty impressive list of investors, no doubt about that.
The investment also raises the stakes as Rivian prepares to take on Tesla, which produces S.U.V.s as well as sedans and last month announced plans for what it is calling the Cybertruck.The New York Times
Oh yeah, the $40,000 truck competing against your $70,000 truck. Hopefully that doesn’t impact demand.
Analysts have said Rivian’s truck is aimed more at recreational activities than at work use. Its truck is shorter than the best-selling Ford F-150. Ford, which invested $500 million in Rivian earlier this year, has said it will release a hybrid F-150 next year and is working on an all-electric version.The New York Times
85% of full-sized pickup trucks designed for work use are used only for personal use in North America. When they say “aimed at recreational use”, it might make sense from a product marketing perspective but the danger is that it just ends up as a truck that’s not taken seriously.
Amazon, which led a $700 million investment round in Rivian in February, is collaborating with the company to develop an electric delivery van. Rivian said Monday that Amazon had ordered 100,000 of the vans and that it expected to start delivering them in 2021. The vans would presumably become part of an end-to-end logistics network that Amazon has been working on since 2015.The New York Times
Nice, I bet Bezos can’t wait to get those vans. Hopefully they don’t suck.
The company says its cheapest R1T can be driven for 230 miles on a charge. Rivian’s website says the starting price of the R1T is $69,000, but on Monday a Rivian representative said a basic model could cost less.The New York Times
For comparison, the 250-mile Cybertruck costs $39,000.
Rivian just completed it’s fourth round of fundraising this year. This time it raised $1.4 billion from T. Rowe Price, Amazon, and FordTweet