BlackRock Bets on U.K. Electric-Vehicle Startup Arrival With $118 Million Investment
Electric-vehicle startup Arrival Ltd. said it has raised $118 million from BlackRock Inc., the latest investor bet on new technology upending the auto sector.
电动汽车初创公司Armining Ltd.说，它已经从贝莱德(BlackRock Inc.)筹集了1.18亿美元，这是投资者对新技术颠覆汽车业的最新押注。
The investment values the U.K.-based manufacturer at around 3 billion, equivalent to $3.5 billion, according to a person familiar with the matter. Arrival is expected to announce the investment later Wednesday.
BlackRock, the world’s biggest money manager overseeing $7.8 trillion in assets, is joining the startup’s existing backers—auto manufacturers Hyundai Motor Co. and Kia Motors Corp. Those companies together invested a total of 100 million in January.
管理着7.8万亿美元资产的全球最大基金管理公司贝莱德(BlackRock)将加入这家初创公司的现有支持者--汽车制造商现代汽车公司(Hyundai Motor Co.)和起亚汽车公司(Kia Motors Corp.)。这两家公司1月份总共投资了1亿欧元。
BlackRock is investing at the same valuation as Hyundai and Kia because it had started its negotiation around the same time as the other two investors. However, the coronavirus pandemic slowed its talks, according to the person familiar with the matter. U.S. delivery company United Parcel Service Inc. is also an investor but the amount it has contributed couldn’t be learned. Together, the four investors will own an undisclosed minority stake, according to the person.
The fundraising is the latest in a wave of investment betting on the growth of electric vehicles as governments and consumers push the auto industry to cut carbon-dioxide emissions and the surging stock-market valuation of industry leader Tesla Inc. shows the potential of big profits from the new technology.
Tesla shares are up about fivefold in 2020, and the auto maker’s market value now exceeds that of Toyota Motor Corp. , General Motors Co. and Ford Motor Co. combined.
特斯拉的股价在2020年上涨了大约五倍，现在这家汽车制造商的市值超过了丰田汽车(Toyota Motor Corp.)、通用汽车(General Motors Co.)和福特汽车(Ford Motor Co.)的总和。
BlackRock’s investment in Arrival comes after the New York-based asset managertopped up its holding in July of Rivian Automotive LLC, an electric pickup-truck startup backed in part by Ford. Rivian’s other backers include T. Rowe Price Group Inc., Soros Fund Management LLC and Fidelity Investments. The two investments also suggest BlackRock might be hedging its bets, underscoring the challenges of picking the ultimate winners. Like Arrival, Rivian makes delivery vans and those are slated for Amazon.com Inc.’s fleet.
贝莱德的投资是在这家总部位于纽约的资产管理公司在7月份增持Rivian Automotive LLC股份之后进行的，Rivian Automotive LLC是一家电动皮卡初创公司，部分得到了福特的支持。里维安的其他支持者包括T.Rowe Price Group Inc.、索罗斯基金管理公司(Soros Fund Management LLC)和富达投资(Fidelity Investments)。这两笔投资还表明，贝莱德可能在对冲押注，突显出挑选最终赢家的挑战。和“到达”一样，里维安也生产送货面包车，这些面包车将用于亚马逊公司(Amazon.com Inc.)的车队。
The risks of investing in the electric-vehicle sector were also highlighted by the controversy over the technology of U.S. electric-truck maker Nikola Corp. That company’s stock is down almost 70% since June amid allegations that the company’s founder, who resigned last month, mislead investors. He denies wrongdoing.
Founded in 2015, Arrival is based in London and is majority-owned by Denis Sverdlov, a former mobile-telecom executive. Arrival makes electric-powered city buses and commercial vans, claiming its vehicles can travel up to 300 miles without recharging and lower ownership costs by 50%, according to its website.
It currently has an order to deliver 10,000 vans to UPS in the U.S. and Europe through 2024. The company is also running a trial of its electric vehicles with DHL Group, the Germany-based logistics company, and Royal Mail, the U.K. postal service. Money for the latest financing will help fund Arrival’s network of what are called micro factories in Europe and the U.S., including a new facility in South Carolina, which is part of its U.S. expansion plans. Former GM executive Mike Ableson is overseeing the U.S. operations.
该公司目前已接到订单，将在2024年之前向美国和欧洲的UPS交付1万辆面包车。该公司还与总部位于德国的物流公司DHL集团(DHL Group)和英国邮政服务公司皇家邮政(Royal Mail)合作，对其电动汽车进行了试验。最新融资的资金将帮助该公司在欧洲和美国建立所谓的微型工厂网络，包括在南卡罗来纳州的一家新工厂，这是该公司在美国扩张计划的一部分。通用汽车前高管迈克·阿布尔森(Mike Ableson)正在监督美国业务。
Currently, Arrival loses money as is typical for startups that are required to make major upfront investments to launch a business. However, it believes the lower investment cost of its smaller-size factories and its focus on the commercial electric-vehicle market will help it achieve profitability faster than its rivals.
At the same time, Arrival could seek additional financing and potentially a public listing to further fund its growth plan, investment bankers have said. One way to achieve this goal could be merging with a publicly traded special-purpose acquisition company, a route that has proven popular with other electric-vehicle startups such as Los Angeles-based Fisker Inc.
Arrival declined to comment on any potential future fundraising efforts.