Skip to main content

Rivian snags investment of another $1.3 billion to manufacture electric pickups

Michigan-based Rivian has secured a sizable $1.3 billion investment led by asset management company T.Rowe Price. The cash injection will help the young maker of electric vehicles ramp up production of its hotly anticipated first models by the end of 2020.

Repeat investors Amazon and Ford each contributed an unspecified amount of money to Rivian’s fourth funding round of 2019, and funds managed by BlackRock are also part of the investment. “The investment demonstrates confidence in our team, products, technology, and strategy. We are extremely excited to have the support of such strong shareholders,” Rivian founder and CEO RJ Scaringe wrote in a statement.

Related Videos

Building cars is a difficult and expensive process — just ask Faraday Future — so Rivian needs as much money as it can get to smoothly start production of the R1S and the R1T it unveiled as close-to-production concept cars during the 2018 Los Angeles Auto Show. It plans to manufacture both off-roaders in a former Mitsubishi factory located in Normal, Illinois. The two models will share most components under the sheet metal, including a relatively flat, skateboard-like platform with four electric motors and one of the largest lithium-ion battery packs ever fitted to an electric car.

Getting both models right the first time is crucial. The R1T (above) will compete in the burgeoning electric pickup truck segment against the polarizing Tesla Cybertruck, Ford’s upcoming battery-powered F-150, the Lordstown Endurance, and the electric model General Motors is developing in Michigan. The R1S, a seven-seater SUV, will have fewer competitors when it goes on sale, though we hear Cadillac will make the next-generation Escalade electric sooner or later.

Rivian is quickly turning into the automotive industry’s new darling. The company hasn’t built a single car, let alone delivered one to paying customers, yet it received a $500 million investment from Ford earlier in 2019, and the two companies are reportedly linking arms to co-develop an electric luxury SUV that will be sold under the Lincoln brand starting in 2022. Amazon led a $700 million investment round in Rivian in 2019, and it later ordered 100,000 examples of a mysterious electric delivery van that will be deployed on America’s roads by 2030. Cox Automotive (the company that owns Kelley Blue Book) earlier put $350 million on the table to help Rivian get off the ground.

Editors' Recommendations

Tesla recalls 363,000 of its vehicles over safety issue
Beta of Tesla's FSD in a car.

Tesla has issued a voluntary recall for 362,758 of its electric vehicles in the U.S. to fix an issue with its Full Self-Driving (FSD Beta) software. If not addressed, the vehicles are at risk of causing an accident.

According to the National Highway Traffic Safety Administration (NHTSA), the recall affects Model S, Model X, Model 3, and Model Y vehicles from 2016 through 2023 model years that have Tesla’s driver-assistance FSD software.

Read more
BMW i4 vs. Tesla Model 3: Which EV sedan is better?
2022 BMW i4 M50

The BMW i4 and Tesla Model 3 are two of the hottest electric cars on the market today. Both vehicles offer a range of features designed to make driving easy and efficient, as well as attractive styling. But each has its advantages and disadvantages, and there is much that sets them apart in terms of performance, technology, convenience, and cost.

Deciding between the two? That's why we've put together this guide. Here are the differences and similarities between the Tesla Model 3 and BMW i4, and why you might want one over the other.

Read more
How much does an electric car battery cost?
electrify america evgo and chargepoint interoperability agreement for electric car charging station

Electric cars are often hailed as being cheaper to operate and repair than gas-powered cars. It makes sense — on the operation side, you only need to pay for electricity (not gasoline), and on the repair side, there’s no motor or transmission to deal with.

But electric cars have other costly repairs, and while in total they do generally cost less than repairs for gasoline cars, it’s worth knowing about the potential costs ahead of time. Perhaps the most obvious, and one of the most costly, has to do with an electric car’s battery. After all, while all cars have batteries, those in electric cars are far bigger and more advanced — and thus can cost quite a bit to replace.
How much does an electric car battery cost?

Read more