The electric car startup Rivian is close to raising a new round of funding that’s expected to be in the tune of several billion dollars and value it at around $25 billion, Bloomberg reports, noting that some of Rivian’s existing investors are expected to participate in the round. 

Rivan is already backed by a hefty $5.6 billion but now appears to be seeking even more funding at a massive $25 billion valuation that’ll make it the most valuable privately-held electric carmaker in the US if finalized.

Rivian is a widely-watched challenger in the American electric car market, going head-on with the likes of Tesla and General Motors. The company is backed by investors like the automaker Ford and the e-commerce giant Amazon which double as strategic partners to its operations.

Rivian has two consumer vehicles in the pipeline; the R1T pickup and the R1S SUV. In addition, it’s secured a deal to produce and supply 100,000 electric delivery trucks to Amazon.

A $25 billion private valuation for Rivian seems outsized given it’s on par with that of several publicly-traded established automakers while Rivian is an incumbent with no product released yet. It could however be rationalized by outsized investor sentiment for electric carmakers that’s landmarked by the electric carmaker Tesla, which now sports a market cap of nearly $700 billion.

Investors are apparently betting on Rivian to be a company that’ll challenge and successfully carve out a lucrative share of the electric car market both in and outside the US for itself. The company’s first product, the R1T pickup, is due to begin delivering in June 2021 barring any delays and manufacturing hiccups.

Photo credit: Rivian

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