Electric vehicle startup Rivian has got some impressive backers and the company has announced that it received a USD 1.3 billion investment. The investment was led by T.Rowe Price. Amazon.com and US automaker Ford was also part of the investment. BlackRock Inc was also part of the investment round, the fourth this year for the electric vehicle manufacturer. Rivian chief executive officer RJ Scaringe said the latest investment demonstrates the confidence of investors. “It shows investors have confidence in our products, team, and technology,” Scaringe said. With the latest funding, the Plymouth, Michigan-based company is now at a better position in the crowded EV manufacturing. The market of the electric vehicle is currently ruled by Tesla Inc. The market is yet to flourish and China and Europe are strongly pushing for it. Companies like General Motors and Ford have already announced plans to spend billions on developing such vehicles.
Rivian, founded in 2009, plans to build pickup truck R1T starting in late 2020. It is focusing on the R1S SUV. The models of both R1T and R1S are based on a Rivian-designed ‘skateboard.’ It is a chassis that holds batteries, electric motor, and controls. It can accommodate different types of body styles. Before this announcement, Rivian had raised USD 2.2 billion from investors. According to an investor website, the company was estimated to be USD 5 to 7 billion. But the current value in the wake of the latest round of investment was not immediately clear. Rivian said it has not added any board seats following the latest investment.
T.Rowe Price has also placed other bets in the auto sector. From Tesla to Cruise self-driving division majorly owned by General Motors, it has invested a handsome amount in the EV sector. T.Rowe has also invested in British online food delivery company Deliveroo and in self-driving car software startup Aurora. Joe Fath, Stock Fund Portfolio Manager of T.Rowe Price, said that the company is excited to invest in Rivian. With Rivian getting more and more investments, the electric vehicle market is going to see some serious competitions.