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Electric truck-maker Rivian announces $2.5B investment

Attendees get a closeup view of the Rivian R1T electric pickup truck on display at the Amazon WS booth during the 2020 International CES at the Las Vegas Convention Center on January 9. Rivian announce a $2.5 billion investment on Friday. File Photo by James Atoa/UPI
Attendees get a closeup view of the Rivian R1T electric pickup truck on display at the Amazon WS booth during the 2020 International CES at the Las Vegas Convention Center on January 9. Rivian announce a $2.5 billion investment on Friday. File Photo by James Atoa/UPI | License Photo

July 10 (UPI) -- Michigan-based electric vehicle company Rivian announced Friday it raised $2.5 billion in an investment round.

The company said the funding is led by funds and accounts advised by T. Rowe Price Associates Inc.

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Rivian introduced two all-electric trucks, called the R1T pickup and R1S SUV, at the Los Angeles Auto Show in November 2018. The company said the two products have a range of up to 400 miles and provide a combination of performance, off-road and utility features.

The company announced plans in September to develop an electric delivery van for Amazon, which was one of the lead contributors in a $700 million investment round in 2019. Rivian expects to manufacture 100,000 of the vans and begin delivery in 2021.

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"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. We are grateful for the strong investor support that helps enable us to focus on execution of our products," said Rivian founder and CEO RJ Scaringe.

Participants in the latest investment round include Soros Fund Management LLC, Coatue, Fidelity Management and Research Company, and Baron Capital Group, and existing shareholders Amazon and funds managed by BlackRock also participated.

The company was founded as Mainstream Motors in 2009, and previously bought an abandoned car manufacturing plant in Normal, Ill., where Mitsubishi and Chrysler Corp. had a joint operation.

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The company is seen as a potential rival to Tesla, which is developing its own electric pickup truck.

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