? *BREAKING* Rivian & VW Announce Joint Venture -- VW Investing $1B in Rivian and another $4B to form JV for next gen EVs

[Southern R1S]

Update from investor call:

Claire just confirmed on the investor call that the capital infusion *is* designated to go directly onto Rivian's balance sheet (rather than into the JV itself). Big, important, and positive distinction.

So basically, you'll have $3B going into Rivian directly (assuming all 3 investments are made), and then $2B going into the JV separately to fund those operations.

The third tranche of equity into Rivian ($1B) is contingent upon Rivian hitting undisclosed financial benchmarks by the time that investment is due to hit.


Official Rivian News Release: https://assets.rivian.com/2md5qhoea...n_Group_Announce_Technology_Joint_Venture.pdf


News Articles:
https://www.businesswire.com/news/home/20240625966539/en/
https://www.cnbc.com/2024/06/25/volkswagen-rivian-stake.html
https://www.bloomberg.com/news/arti...on-in-ev-startup-rivian-to-form-joint-venture



Anticipated Investment Schedule:

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[Redline]

Big news

 

[jjswan33]

Interesting.. not a partnership I would have expected.

Does this mean we get plug and charge at EA after all

 

[COdogman]

So should we assume this means Rivian will provide the platform for their Scout brand?

 

[godfodder0901]

I guess now we know why the Scout looked so familiar...

 

[Southern R1S]

So should we assume this means Rivian will provide the platform for their Scout brand?

I didn't even think about that. Now I'm even more intrigued...

I'm assuming the ID. Buzz is too far along in development to benefit from this, but lots of intriguing possibilities that could come from this.

 

[jjswan33]

So should we assume this means Rivian will provide the platform for their Scout brand?

I guess it should help Rivian enter the EU market given their foot print there.

 

[Redline]

This pretty much makes sure Rivian lives on for the foreseeable future.

 

[electruck]

Very interested to see how this is structured but $5B is huge!

 

[COdogman]

I guess it should help Rivian enter the EU market given their foot print there.

Definitely! It's not a partnership one would think makes sense at first, but the more I think about it, they both have plenty to offer the other.

 

[Administrator]

Very interested to see how this is structured but $5B is huge!

Some more info:

Rivian shares soar 30% after Volkswagen takes $1 billion stake

https://www.cnbc.com/2024/06/25/volkswagen-rivian-stake.html

June 25, 2024

Volkswagen is taking a $1 billion stake in electric vehicle startup Rivian, which has been seeking to cut costs and shore up cash amid slower-than-expected adoption of EVs.

The companies also plan to establish a joint venture, which could increase the investment to up to $5 billion until 2026.

The companies announced the deal after markets closed Tuesday – two days ahead of an investor event for Rivian, which has been under pressure from Wall Street due to its cash burn and significant losses.

Volkswagen is now the second legacy automaker to take a stake in the California-based company. Ford Motor was among Rivian’s largest stakeholders, at roughly 12%, alongside Amazon when Rivian went public in 2021. The Detroit automaker sold a majority of its Rivian shares by 2023 after walking back a plan to codevelop EVs with the company.

Rivian reported a loss of $1.45 billion during the first quarter of this year, as it retooled its plant in Normal, Illinois, to launch updated versions of its R1T pickup and R1S SUV EVs ahead of its next-generation vehicles in 2026.

The company has been on a cost-cutting mission for months. It has trimmed staff, retooled its Illinois plant to increase efficiencies and paused construction of a new multibillion-dollar factory in Georgia. That last measure is expected to save more than $2.25 billion in capital spending, including the impact of starting production of Rivian’s next-generation R2 vehicle at its plant in Illinois.

Rivian reported $7.86 billion in cash, cash equivalents and short-term investments to end March, with more than $9 billion in total liquidity.




Volkswagen to invest up to $5 billion in EV maker Rivian as part of tech joint venture

https://www.bloomberg.com/news/arti...on-in-ev-startup-rivian-to-form-joint-venture

June 25, 2024

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.

VW said in a release that it will invest $1 billion immediately in Rivian and an additional $4 billion over time. The companies said the new venture will be “equally controlled and owned.” The companies said they will develop “next generation” battery-powered vehicles with leading edge software.

 

[Dark-Fx]

Wonder how long before this falls apart like the Mercedes JV.

 

[electruck]

Seems VW may finally be getting the help it so desperately needs with SDV capabilities.

https://finance.yahoo.com/news/volkswagen-invest-5-billion-rivian-200612312.html

 

[dleepnw]

Is this good news? Other than the obvious that Rivian needs money?

 

[Southern R1S]

Is this good news? Other than the obvious that Rivian needs money?

Great news IMO. This creates & diversifies revenue streams and allows them to recoup R&D costs that they've already incurred (and will continue to incur though the development of subsequent models).

The investment is huge to current liquidity, but more than that it significantly improves the long term prospects for Rivian.

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