Electric vehicle startup Rivian Automotive Inc. today disclosed that it has raised a $2.5 billion funding round led by T. Rowe Price Associates Inc. with participation from Amazon.com Inc. and multiple other institutional backers.

The investment is Rivian’s fifth since the start of 2019. Its previous capital raises included a $700 million round last February that was led by Amazon, which has since announced plans to buy 100,000 electric delivery vans from the startup.

Plymouth, Michigan-based Rivian plans to launch a series of electric vehicle models in 2021 that will feature Level 3 autonomy. That term usually describex vehicles that can drive themselves but only when road conditions are favorable. Rivian is readying a custom delivery van developed for Amazon as well as two consumer-focused SUV and pickup truck models.

All of Rivian’s vehicles are based on what the startup refers to as its “skateboard” platform. It’s a customizable chassis suitable for building different kinds of automobiles that includes the wheels, battery pack, suspension and other components.

Rivian’s skateboard platform likely played no small part in helping the startup to raise billions of dollars from investors before even bringing its first vehicle to market. Rivian last year shared plans to make the chassis available to other automakers, which could potentially give it a sizable second revenue stream on top of vehicle sales. The startup has already landed a development deal with Ford Motor Co. and a related $500 million investment, though Ford earlier this year delayed plans to make a vehicle based on Rivian’s platform.

A universal chassis also provides certain manufacturing efficiencies. By reusing the same skateboard platform across all its vehicles instead of making a separate chassis for each, Rivian could potentially ramp up production faster than rivals. At least two auto industry analysts believe Rivian is ahead of competitors such as Tesla Inc. on this front.

In a sign of Rivian’s ambitious manufacturing plans, the startup has set a goal of delivering 10,000 vans to Amazon within a year of the 2021 target launch date. The vans will reportedly feature several Amazon-specific systems including Alexa and the online retailer’s logistics management software.

Amazon’s efforts to electrify its delivery fleet may potentially converge with its emerging autonomous driving strategy in the future. Late last month, the company announced that it’s acquiring autonomous driving startup Zoox Inc. in a deal reportedly worth $1.2 billion. Sources this week told Reuters that Amazon also plans to offer at least $100 million in stock awards to Zoox employees in order to retain the startup’s talent. 

“We are focused on the launch of our R1T, R1S and Amazon delivery vehicles,” Rivian Chief Executive RJ Scaringe said in a statement today. “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.”

Citing a source, CNBC reported today that Rivian may have raised the $2.5 billion round at a pre-money valuation of $8 billion or more.

Photo: Rivian