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

[Milermore]

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

or Ford.

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[Milermore]

It's interesting how similar VW Scout is to R1S and R3 is to VW Rabbit.
I still think it's coincidence, but a fun coincidence.

 

[iansriv]

This is good news! Need to get a VW emblem so I don't have to explain who "makes the Rivian." Lot's of great brands in the VW family doing well like Porsche. I hope VW lets Rivian do its thing like they did with Porsche. Also, hope there's some good cross pollination.

 

[jfrieden]

This does four things:
1. VW ID.x products will become better.
2. Scout becomes a more realistic, and exciting endeavor
3. Rivian gets much needed cash and will be able to sustain through R2 and R3 without living on fumes.
4. In turn, this makes the market and competition better, healthier and more viable.

This is a great thing.

 

[R1Tom]

This better not delay 2024.19

Hopefully the Das Auto start up screen was already loaded in and just date activated.

 

[ndmiller]

This is good news! Need to get a VW emblem so I don't have to explain who "makes the Rivian." Lot's of great brands in the VW family doing well like Porsche. I hope VW lets Rivian do its thing like they did with Porsche. Also, hope there's some good cross pollination.

Well technically Porsche while a subsidiary of Volkswagen AG owns a majority position in Volkswagen AG. So while VW is letting Porsche be independent, Porsche made that decision for VW.

So, what company owns Porsche? Is Porsche owned by VW? Technically, yes. Porsche and Volkswagen merged in 2011. At that time, Porsche was designated a subsidiary of Volkswagen AG (interestingly, besides being the Porsche parent company, VW also owns Audi, Bugatti, and Lamborghini). So, from that standpoint, Volkswagen AG is the company who owns Porsche. However, Porsche also owns a majority share in Volkswagen AG. The result is that two great automakers get to continue a partnership that was started decades ago.​

 

[RivRyan]

This is good news! Need to get a VW emblem so I don't have to explain who "makes the Rivian."

I’ll swap. I’m looking for a Rivian emblem for my ID4!?

 

[DuoRivians]

I think the JV gives Rivian much needed cash.

That said, I’m not sure which side got the better deal.

Asked another way:

Assume VW pays Rivian a license to use Rivian's ECU + software IP for all of their EV cars in 2025+.

Would the present value of these license payments be greater than, less than, or equal to $5 billion?

 

[kurtlikevonnegut]

It's interesting how similar VW Scout is to R1S and R3 is to VW Rabbit.
I still think it's coincidence, but a fun coincidence.

I'd expect the Scout SUV to be far more similar to R2 than R1S

 

[Glembi2]

I do not like this at all. VW is one of the worst manufactures on the planet outside of those in China.

They have been known for industrial espionage, and have paid fines for it.

I agree with you that VW’s cheating was bad. I remember thinking during dieselgate that VW was the worst of the worst for cheating on a global scale. Then I thought that about Mitsubishi, and then Toyota, and then … Companies are not beholden to the public, they are beholden to their shareholders. Each is out to improve their bottom line.

Some get caught, others not yet? This deal is good for Rivian and I’m happy with that. Service Centers to stay open for a number of years and (fingers crossed) an R3X Pikes Peak version is in all of our futures.

 

[Discover]

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

VERY familiar...

Share is already up 50% (after hours)...

 

[JMACCA]

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.

ACCESS TO THE QUANTUMSCAPE SOLID STATE BATTERY BEING TRIALED BY VW WOULD BE AMAZING

 

[HeresRonnie]

Wow this is big news, the stock exploded after hours, wonder what it’s going to do at open tomorrow.

 

[Riptide]

Guess we can expect the R3 to look even more like a 89 VW Fox!

 

[edk]

I wouldn't worry at all about the dilution if you are holding Rivian stock. Ignoring the 1B convertible note and assuming that VW contributes 2B in new equity, then the stock price would only need to increase from todays closing of $11.96 to $14.14 to cancel out the effect of the dilution. And because the equity will be purchased at some dates in the future, one might hope that the market cap will be significantly higher by then, meaning that the required increase in the stock price could be significantly less.

I think today's announcement will cause many people to reconsider the risk of purchasing a Rivian vehicle, and this should result in an immediate stock price boost as well as additional benefits when future results come in.

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