Rivian closing in on second financing round as it scales up to 200 US and Canada employment targets

Aurora, Ill.-based Rivian has closed on a $200 million follow-on offering, after its initial public offering and outstanding stock sale in December. That means investors are feeling pretty confident, particularly after the Rivian exhibited…

Rivian closing in on second financing round as it scales up to 200 US and Canada employment targets

Aurora, Ill.-based Rivian has closed on a $200 million follow-on offering, after its initial public offering and outstanding stock sale in December. That means investors are feeling pretty confident, particularly after the Rivian exhibited its electric-truck prowess and a recent showing of its ARIOD semi-truck in Detroit.

The $200 million, which represents 4.3 million shares of Rivian stock at $30 per share, will be available through an underwriting syndicate including KeyBanc Capital Markets and J.P. Morgan. The underwriters have the option to purchase up to an additional 525,000 shares at the same price.

Despite news that Rivian isn’t profitable, its investors still see promise in Rivian. Right now, the automaker still employs about 100 people, a number that will most likely grow with the additional capital, increasing its capital by at least $100 million.

Rivian hopes to expand to 200 employees in the near future. To that end, Rivian’s ARIOD is pretty full in a major city like Chicago, albeit the company predicts it will be able to expand the fleet in the future and even increase customer demand by adding a more affordable truck to the lineup.

Rivian launched its ARIOD at the 2019 North American International Auto Show in Detroit. Rivian has 200 ARIOD trucks on order. We drove an example, and we were impressed with the capabilities.

As we said, the truck is really impressive: A groundbreaking ride, control technology, autonomous features, and top-notch interior design. For example, the driver’s position can be measured with the help of an electro-mechanical system called the ARIOD platooning system, and direct signals help you stay in your lane.

Moreover, Rivian is planning on expanding the ARIOD series throughout the United States and Canada. So, what comes next? Our best guess is an additional $10,000 or so more premium per vehicle and a higher torque figure to boot. That’s the price of progress, it seems.

Here’s what Rivian founder and CEO RJ Scaringe said in a press release.

“Accelerating our growth in the United States and Canada with the significant Series B raise will allow us to accelerate our pre-delivery deliveries to our customers, deploy new systems to a larger fleet, and better leverage new business models and vehicles to generate more revenue.”

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