Cox Automotive, the transport-focused division of media, automotive and telecommunications group Cox Enterprises, invested $350m in US-based electric off-road vehicle developer Rivian on Tuesday.
The cash was provided at a $3.5bn valuation, a person familiar with the matter told the Wall Street Journal, and it increased the company’s total funding to $2.35bn.
Rivian is working on plug-in electric trucks and sports utility vehicles (SUVs) that will be capable of a 400-mile range from a single charge. It has three development centres across the US and UK in addition to a production plant, and has scheduled the release of its first two vehicles for late 2020.
Cox Automotive oversees a range of brands including media title Auto Trader, transportation logistics provider Ready Logistics and auction service Manheim. In addition to investing in the company, it intends to collaborate on service provision, digital retail and logistics activities.
RJ Scaringe, Rivian’s founder and chief executive, said: “We are building a Rivian ownership experience that matches the care and consideration that go into our vehicles.
“As part of this, we are excited to work with Cox Automotive in delivering a consistent customer experience across our various touchpoints. Cox Automotive’s global footprint, service and logistics capabilities, and retail technology platform make them a great partner for us.”
E-commerce firm Amazon led a $700m round for Rivian in February this year that also featured unnamed existing investors likely to have included car dealership owner Abdul Latif Jameel and conglomerate Sumitomo.
The February round reportedly took the company’s total funding to $1.5bn, it said. It added $500m from automotive manufacturer Ford Motor Company two months later.
Photo courtesy of Rivian.