Volkswagen Plans to Make $5 Billion Investment Into Rivian

Volkswagen AG will invest $5 billion to form a joint venture with electric vehicle maker Rivian Automotive Inc., throwing a lifeline to the struggling startup and giving the German automaker access to the American EV company’s technology. David Welch has more.
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[@mikethecargeek]

This segment was done BEFORE Rivian Investor Call where more details were provided. The reporter makes a lot of speculative statements about sharing Pickups and SUV parts… not true.

[@JeremyIrving1]

Rivian rules

[@993mike]

In money lost per vehicle - for sure!

[@Neojhun]

@@993mike Far from it, they are far from the worst.

[@trinidadandtobago7098]

You mean Chinese byd rules.

[@phawethi3987]

I own Vivian stocks and bought more when I saw the car in my neighbor garage. Good looking and good quality car. Vivian will be trading at $50 soon

[@schouten841]

57k car be produced is the guidance for 2024 and you think this company is worth a market cap of 50B. I think you're crasy in the head due to the IPO prices back then in an overvalued bull market lol.

[@skyak4493]

I don’t know what VW had planned for “Scout” brand but it is safe to say Rivian is a cheaper way to a proven high quality offering. I just wonder how dilutive this will be.

[@stickynorth]

My thoughts... Just do superficial design changes if needed and get 'er done!

[@skyak4493]

@@stickynorth VWs #1 talent is superficial design, particularly for interior. I see more stories that VW wants Rivian software. Incumbant car companies don’t even know how to hire or value programers.

[@jonathanbell9349]

Rivian is up 46 percent after hours

[@993mike]

When the stock is this low, it doesn’t take much to move it.

[@RoyceBenning]

RIVN needed this badly

[@993mike]

Absolutely! They were up against the ropes, bleeding cash, with their stock in the dumpster. VW is keeping them from going out of business

[@press1to]

Great for both automakers

[@brianoliveira8625]

Rivian will be a Big player in the "EV Truck"/SUV space, this all but cements it. I mean, I can't afford either at the moment but which would one rather have?: The R1T Truck or the Cybertruck?

[@pennyharris446]

This is good for both companies. Rivian licensing its software to VW is definitely financially needed for Rivian to get through the next couple of years, which they need the time if they’re going to get their R2 to any acceptable scale. VW has a ton of cash to spare so 1b to start and 5b in total is Pennie’s for VW, and their software in their EV lineup has been their Achilles heel this past couple of years for their EV sector. This deal is going to put VW back on and probably give Rivian the lifeline needed to eventually start scaling.

[@rickmcdonald7075]

This is very interesting. Software may be another reason VW is investing. Also, maybe Rivian is further ahead on the next generation of EVs than VW.

[@WilliDurpel]

I don't think so. Volkswagen did have teething troubles, but at least in Europe these have been completely resolved. In other words, the MEB platform is now really good and another platform for cheaper models is as good as ready. Then there's the platform under the latest Audi and Porsche models, which makes Rivian look old in comparison.

[@almac9203]

​@@WilliDurpelVW also has access to EV technology from Xpeng and Rimac. Not sure why they need Rivan.

[@rickmcdonald7075]

What they said was it was an agreement on software and zonal architecture. I agree that the VW group’s hardware is solid, and that they improved the software so that it is not so glitchy. It seems hard to believe that zonal architecture alone is worth even the initial investment. So, I conclude that VW does think that Rivian’s software and software team is both ahead and more capable than their own software team.

[@rickmcdonald7075]

@@almac9203 Autoline reported today that the Xpeng and Rimac deal only allows them to use the technology in China.

[@WilliDurpel]

@@rickmcdonald7075 maybe it is also a try to get a better entrance into the american market, because in the long term they will lose some sales in china

[@RayNLA]

We got a huge hint that this was coming. Rivian’s R3 prototype looks just like a 83’ Volkswagen Rabbit!

[@theadvocate4698]

That's because R3! Will make a great VW!

[@marshalllapenta7656]

Perhaps VW wants Rivian to make EV parts for them?

[@mikapeltokorpi7671]

Infotainment, at least. They have a decent power train, already.

[@marshalllapenta7656]

@@mikapeltokorpi7671 That's what I was thinking VW wants that power train

[@mikapeltokorpi7671]

@marshalllapenta7656 No. VW has a decent power train already. They invested in a similar manner in Rimac a couple of years ago and got it from there. But you never know.

[@marshalllapenta7656]

@@mikapeltokorpi7671 Electric Vehicles are way behind in GERMANY!!!!!!!!!

[@mikapeltokorpi7671]

@@marshalllapenta7656 People have different driving profile in EU. I think PHEV with 100km+ range is way better fit here, than pure EV/BEV. Depending on incentives, naturally. And especially Germany's weak point is ludicrously high electric prices.

[@markdc1145]

Who says VW won't eventually buy Rivian? It's definitely in the cards. Rivian's also an excellent partner for Scout platform sharing. Just wait and see!

[@wayando]

Jeff Bezos us the godfather of Rivian ... I don't think VW will just vuy them up that easily.

[@PK-uk3gh]

The market cap of Rivian is 11 Billion and Volkswagen invests 5 Billion

[@993mike]

That’s how bad off Rivian was.

[@jdavis6618]

Yeah buddy!!!

[@stickynorth]

Rivian basically was making what the Scout brand was planning on doing anyhow... Perhaps this can speed up production of those planned designs since I am sure a lot of the underpinnings are/were designed to be similar...

[@evoniics9572]

VW wants the software of Rivian.

[@TheJ1s]

This guy clearly doesn't know, VW has been having development software issues, and Rivian has very smooth software almost as good as Tesla. VW has their spin-off truck EVs from Scout that will be announced soon. If this guy has ever been in a VW ID4 then he'll know how badly VW needs to upgrade their stuff, and of course, Rivian needs money to bring out their R2 to the masses and hopefully get R3 going as well.

[@kurtg3891]

this is exactly what so many Tesla focused youtubers constantly predicted, that the legacy auto brands would all soon try to combine with other EV start ups simply to avoid going out of business.... well here we go !?

[@BrunoHeggli-zp3nl]

Wrong!

[@BrunoHeggli-zp3nl]

Legacy wont go out of business without or with startups!You better worry about Tesla!

[@theotherside52]

I knew someone would bail them out their amazing

[@andersn8547]

It's all about software..

[@jeremyr6844]

Wiring architecture and software only. No sharing of “parts bin” or anything.

[@chillfluencer]

Pure desperation: Volkswagen - which has an overall debt of US$ 210.71 billion - doesn't have any chance against China, Tesla and South Korea. Now it throws money at XPENG and Rivian because it thinks that they will say it. My prediction is that XPENG will buy the entire Volkswagen Group eventually.

[@im4udevco]

This tells you everything you need to know about Rivian. I’m not sure why these analysts keep analyzing when the fundamentals are clear and on Rivian’s side.

[@ocampbell1954]

Clear on what side. They're burning through cash every car sold and still can't scale.

[@993mike]

lol - yeah, as Rivian loses thousands on every vehicle they make, and even with the move today the stock has absolutely tanked. VW is keeping them out of bankruptcy

[@JimmyHuynhdesign]

Rivian designers are top notch

[@theotherside52]

Bullish on both should have never sold Rivian

[@press1to]

Next joint venture will be with apple

[@almac9203]

Apple could have saved itself billions of dollars by buying an established automaker.

[@esamm3837]

Rivian stock price 56$ soon

[@maxhugen]

This is nuts. Rivian is _vastly_ overpriced - for a start. 🤦‍♂

[@LG-th8xt]

when a loser and a bum come together, the result is usually disaster

[@luckylenny]

How is the $1 bill convertible note with VW any different than the $3.2 bill of convertibles issued in '23? In both cases, Rivian is taking on debt, interest payments and possible share dilution (if shares move higher). With the $3.2 bill of convertibles issued in '23, the buyers just gets interest along the way. With VW, Rivian not only has to pay interest, but Rivian also gives up its intellectural property. In summary, if the earlier convertibles were a bad idea, than this current round of convertibles with VW is also bad

[@wensiangfong]

most funny things is VW shares drop....it should be the opposite,,, VW gonna own all Rivian tech and come out own VW EV to fight Rivian.

[@itisim]

Tesla fan boys hate rivian

[@hazmatt81]

Not this one...we need competition. This gives Rivian quite the runway for development. This should get them beyond the production ramp of the R3 which will be pretty huge for Rivian. I had a R1S Reservation but I cancelled it as I didn't want to own a 1st Gen EV from anyone. Maybe a few years from now, I'll be eyeing something from Rivian! Model S and Model 3 Performance owner currently.

[@itisim]

@@hazmatt81 yep

[@itisim]

@@hazmatt81 I'm glad this will help

[@TheMagicJIZZ]

I doubt it Tbh, ​@@itisim

[@ocampbell1954]

Tesla people don't even think about a company burning through cash and can't scale. The Chinese stand more of a chance that that fire pit company.

[@thomas316]

VW are late to this.

[@paulferrer3578]

Bezos part owed rivian...

[@alecsey453]

🙏👍

[@yifantian1942]

Compared with Rivian, Zeeker is a better investment from every angle.

[@beaches3]

uu

[@regolith1350]

3:19 Ah Bloomberg with the completely random and unprompted dig at Tesla. Lapdog's gotta lapdog.

[@billpower835]

Reminds me of GM investing in Lordstown and Nikola.

[@itisim]

Except lordstown and nikola never made a product on the road long enough

[@southrichmondtofl]

GM is a dying company, VW is acceleration forward!

[@Solairethedarksoul]

Excuse me? They take the Canadian governments 5 billion dollar investment for a battery plant and they buy shares in rivian?? WTF? And did they just do this to acquire that amazon contract?

[@AdamFrugoli]

This guy has zero idea what's going on at Tesla.

[@BrunoHeggli-zp3nl]

Nothing is going on at Tesla other then lower sales and lower profitmargins!

[@AdamFrugoli]

@@BrunoHeggli-zp3nl I guess the fact that they have the worlds number one selling vehicle that happens to be an EV is lost on you. It’s probably also lost on you that Tesla is the third largest auto maker in the United States now ironically, selling just electric vehicles.

[@BrunoHeggli-zp3nl]

@@AdamFrugoli Blahblanlah most sold Modell!They only sold 1.8 Million cars last year and they will sell max 1.8 million this year too!Thats chickenshit!

[@AdamFrugoli]

@@BrunoHeggli-zp3nl you’re off by 4.5 million buddy.

[@BrunoHeggli-zp3nl]

​@@AdamFrugolihow so?Tesla Sold 1.8 Million Cars Last year in a 85 Million global carmarket!So Tesla has a Marketshare around 2% and it doesnt looks much better this year!

[@apsmith1635]

Don’t. We do not want cars from putins only friend

[@hilwaamanamankiyar-pp5bf]

CBS

[@ZakiSalem-zh5gr]

Rivian is just a bottomless pit at this point. This is similar to saudi arabia investing in lucid, and look how that went

[@BrunoHeggli-zp3nl]

Wrong

[@Bdub1952]

Will they solve the problem of ten year battery life and owner's hesitancy to spend ten+ thousand dollar for battery replacement? Until that time, we're living in a disposable EV world.

[@rickmcdonald7075]

Rivian’s 8 year 150,000-175,000 mile drivetrain warranty is one of the longest battery warranties.

[@Bdub1952]

@@rickmcdonald7075 that's well and good, but in 9 years when the battery fails, is it a better idea to buy a new vehicle or replace the battery for ten+ thousand? Tesla Model S's with spent batteries are selling for a fraction of their original price.

[@santostv.]

Why?? Do they even make money?? Truck owners in general don’t like ev’s It’s shows desperate, Germans are usually conservatives but because everyone is saying they need to be more like usa companies this is the result but vw can’t afford it unless rivian has some tech or software that’s is better

[@Solairethedarksoul]

Ya but wasn’t Amazon buying rivians for their fleet and now they have the backing of a major auto manufacturer? Maybe it’s the amazon contract they want.

[@Manselus-c1f]

I think investors should always put their cash to work, especially In 2024, we'll start to see more market diversification. I'm hoping to invest about $350k of my savings in stocks against next year. Hope to make millions in 2024

[@Theodore454]

Since risk is at an all-time high right now, perhaps you should be a little more patient and return when it has decreased. Alternatively, you can consult a trained financial expert for strategy.

[@Freya-jq8mc]

Yes true, I have been in touch with a brokerage Advisor. With an initial starting reserve of $80k, my advisor chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.

[@nalivkin-ls3pg]

I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?

[@Freya-jq8mc]

My CFA ’ANGELA LYNN SCHILLING’ , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.

[@nalivkin-ls3pg]

I searched for her full name online, found her page, and sent an email to schedule a meeting. Hopefully, she responds soon. Thank you

[@IReapZz95]

VW electric platform sucks in all honesty

[@BrunoHeggli-zp3nl]

Wrong!

[@IReapZz95]

@@BrunoHeggli-zp3nl How does it not? Its not as efficient as its competitors, doesn't have enough range, doesn't accelerate as fast and charges slower than competitors.... even the new macan using the updated platform has improved in all of the above points, but still has bad efficiency and cost an arm and a leg. The ID line up competes directly against tesla model y and 3 in price point and is worse in all the mentioned points

[@akebouz]

VW loves to throw money down the drain

[@adriancooper78]

So true!!!

[@shippenman5977]

Stupid move

[@Richard85583]

China owns Volvo so this makes sense if they want to get into the U.S. market

[@rcpmac]

You mean if VW wants to get into the US market? They already have plants here building ID4s

[@WilliDurpel]

they are talking about VW and not Volvo

[@vincenttraylor1696]

Rivian is the second gayest car behind Tesla

[@oscaravila6748]

That’s your opinion we’re here to make money

[@caydenthompson126]

🤡

[@itisim]

🤣🤣🤣cry baby must have his money tied up in elon

[@TheMagicJIZZ]

​@@itisimhe's attacking both lmao?

[@itisim]

@TheMagicJIZZ he lost money in tesla and mad at rivian now he mad at both such a B

[@jazzman7167]

BYD saying, 🥱🥱