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Rivian Raises $2.5 Bln In New Investment Round

Electric vehicle start-up Rivian said Friday it has closed an investment round of $2.5 billion as it focuses on the launch of its all-electric pickup truck and SUV next year. The investment round is Rivian's first in 2020.

The new financing was led by funds and accounts advised by investment firm T. Rowe Price Associates, Inc.

Rivian noted that Soros Fund Management LLC, Coatue, Fidelity Management and Research Company, and Baron Capital Group also participated in the new funding round. In addition, existing shareholders Amazon and funds managed by BlackRock participated.

"We are focused on the launch of our R1T, R1S and Amazon delivery vehicles. With all three launches occurring in 2021, our teams are working hard to ensure our vehicles, supply chain and production systems are ready for a robust production ramp up," said Rivian Founder and CEO RJ Scaringe.

Rivian said it has not added any new board seats and is not disclosing additional details about this investment currently.

Rivian is seen as a rival to Tesla. In November 2019, Tesla launched its much-awaited new electric pickup Cybertruck, which is designed to have the utility of a truck and the performance of a sports car.

In December 2019, Rivian closed an investment round of $1.3 billion. The financing was led by funds and accounts advised by T. Rowe Price Associates, Inc. with additional participation from Amazon, Ford Motor Co. and funds managed by BlackRock.

That investment round was Rivian's fourth of 2019, bringing its fund-raising for last year to almost $3 billion.

Rivian claims that its launch products - the five-passenger R1T all-electric pickup truck and seven-passenger R1S SUV - will deliver a range of more than 400 miles on a single charge.

These vehicles use Rivian's flexible skateboard platform and will be produced at the company's manufacturing plant in Normal, Illinois, with customer deliveries expected to begin in 2021.

Rivian said in September 2019 it was collaborating with Amazon on the development of an electric delivery van utilizing Rivian's platform technology, and that 100,000 of these vans were ordered with deliveries starting in 2021.

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