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

[NY_Rob]

Great!! If Rivian stock quadruples by tomorrow morning I'll almost hit my average share purchase price

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[Rividiculous]

Scary that we have to think about the viability of the car maker.

Need to remember that Amazon invested a ton too and that stability is long gone.

You wouldn’t happen to be short Rivian, would you?

I’m thinking a few people on this thread just might be.

 

[Electron]

Out of all companies, why VW with their crap EVs and diesel gate EA reputation etc...

Desperate measures calls for desperate times and Rivian just needs to take what it can right now, even if it's VW.

 

[Rizzian]

Time to start going crazy with the AI mashups...

 

[Churrodecoco]

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

This is the 1st thing that crossed my mind as soon as I saw this announcement. It makes perfect sense. Rivian has proven to make capable solid off-roaders, just extend their production capabilities to produce the Scout brand makes tons of sense. Not to mention Rivian's service network could also be leveraged. Rivian's charging network could further specialize in remote off-road locations knowing Scout SUVs would also be using them. Actually, since Electrify America is a VW spin-off (because of Deisalgste) they could start buying Rivian changing equipment, especially since the home grown Rivian chargers are way more reliable than the hodge-podge equipment they hooked together from all kinds of other manufacturers.

 

[Electron]

You wouldn’t happen to be short Rivian, would you?

I’m thinking a few people on this thread just might be.

Cash out. I sure did as I day trade. This is a typical pump. It'll surely drop again IMO.

The only ones to tell you to hold are fan boys, just like in the TSLA realm.

These stocks are just tools. No emotions attached. Just trade them, realize the profits, rinse and repeat. All this volatility is great for day / swing traders.

 

[Southern R1S]

Impact on SH value? Does this dilute shares?

They just announced on the investor call that the initial $1B investment is via an unsecured convertible note that will convert in 2 simultaneous tranches - $500M at a little under $11/share, and another $500M at the 45-day weighted average share price immediately prior to the later of regulatory approval or 12/31/2024.

The subsequent equity investments will be based on 30-day weighted averages prior to the investment dates.

 

[Hereforthesnacks]

You wouldn’t happen to be short Rivian, would you?

I’m thinking a few people on this thread just might be.

Me? Not at all. I’ve been in at 40, 30 and 10. Heavy at 10. I’m having a good evening lol.

I just don’t let emotion get in the way of investing. Money don’t have feelings lol

 

[DuoRivian]

This could also help Rivian with procurement and driving savings there as VW obviously has a good set of vendors and buys in huge volume - maybe Rivian can take advantage of that in the future.

 

[MrMusAddict]

According to RJ on the investor's call, it sounds like the joint venture is PURELY focused on the multi-zonal ECU architecture, and the software that goes with it. But it does NOT include autonomy.

So, sounds like it's just the "nervous system" of the vehicle that VW is going to use, and any necessary software/hardware to control it (but not autonomously).

 

[Davethadog]

Hate to be Debbie Downer, but consumers probably won't see anything from this for at least 2-3 years, and it will be in the form of better, cheaper VW EVs with better wiring and software.

Rivian will see enough cash to give them a real chance at making it to r2 and r3 production not on total fumes. This is a lot of capital.

 

[Lawrence-of-Blaine]

Dang, I just sold some $12.5 call contracts for Friday today too!

Oops!!

 

[DuoRivian]

According to RJ on the investor's call, it sounds like the joint venture is PURELY focused on the multi-zonal ECU architecture, and the software that goes with it. But it does NOT include autonomy.

So, sounds like it's just the "nervous system" of the vehicle that VW is going to use, and any necessary software/hardware to control it (but not autonomously).

True for now but of course a successful JV will open up opportunities for the many other areas of collaboration that people have suggested.

 

[juan]

VW customer service and track record is pretty terrible, so hoping this doesn't hurt Rivian more than it might help it

 

[Southern R1S]

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.

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