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

[cohall]

If a large part of this announcement is due to VW's interest in Rivian's software, and we all know how buggy Rivian's software can be, it really begs the big question: How awful is VW's software???? I've never driven a VW EV.

My software is, and always been, very stable. What’s happening with yours that makes it buggy?

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[Chrisy]

Is this as simple as:

(1) VW is over dependent on Bosch as a supplier
(2) Rivian developed an in-house electronic architecture, competitive to Bosch
(3) VW wants leverage against Bosch for pricing, or wants to control its electronic architecture altogether going forward
(4) Rivian needs cash
(5) Rivian spins out its electronics division to a VW-Rivian JV which will supply electronics to VW and Rivian

Is this it?

This could be a viable reason but I think not a $5bln viable

 

[Davethadog]

This could be a viable reason but I think not a $5bln viable

It’s not as if they’re just paying 5b to be in the same room as Rivian. They get a stake in the company too.

 

[docwhiz]

Here's a good article that explains VWs software problems and why they are running to Rivian.

https://www.msn.com/en-us/autos/oth...ftware-headaches-led-it-to-rivian/ar-BB1oVSxM

 

[White Shadow]

I was hoping share value would continue to rise, but it looks like the selloff has already begun. Down about $3/share since yesterday's high. Oh well, let's see how it rides out for the remainder of the week.

 

[zipzag]

I think VW is positioning to potentially buy Rivian. They bought smaller auto brands in the past. Lamborghinis literally have parts from the VW parts bin.

While I don't get how Rivian shares software with VW, the deal is great to reassuring buyers that Rivian has a future. Rivian seems to fit well with VW as premium but not European-like. Most people would have a strong preference between Audi and Rivian.

 

[savethemanual]

I was hoping share value would continue to rise, but it looks like the selloff has already begun. Down about $3/share since yesterday's high. Oh well, let's see how it rides out for the remainder of the week.

I'm more interested in how it rides out the next few years, one of those long folks

 

[savethemanual]

I think VW is positioning to potentially buy Rivian. They bought smaller auto brands in the past. Lamborghinis literally have parts from the VW parts bin.

While I don't get how Rivian shares software with VW, the deal is great to reassuring buyers that Rivian has a future. Rivian seems to fit well with VW as premium but not European-like. Most people would have a strong preference between Audi and Rivian.

I would love to see Rivian make it on their own....but the competition fierce. Like Rivian, I do believe we're headed for an all EV future with light duty vehicles. Once that demand really kicks in, the legacy makers will figure it out, and, so many of the masses are brand loyal with apprehension to a new startup. A merger with deep pockets makes sense in so many ways....but hoping RJ figures it out and they make it without another sugar daddy (Amazon)

 

[White Shadow]

I'm more interested in how it rides out the next few years, one of those long folks

Me too, I agree. But to gain over the years, it's got to start rising at some point and maintain the upwards momentum.

 

[Autolycus]

I would love to see Rivian make it on their own....but the competition fierce. Like Rivian, I do believe we're headed for an all EV future with light duty vehicles. Once that demand really kicks in, the legacy makers will figure it out, and, so many of the masses are brand loyal with apprehension to a new startup. A merger with deep pockets makes sense in so many ways....but hoping RJ figures it out and they make it without another sugar daddy (Amazon)

Consumers are brand-loyal until they aren't. Tesla is a great example of creating a brand from scratch. Audi has existed for a long time, but had no footprint in the US until relatively recently and its initial brand value in the US was AWFUL. They've turned it around and do fairly well in the US now.

Nissan, Toyota, Honda, Hyundai, Kia, and others were known brands outside the US but not inside the US until much later than the "Big 3". They've certainly built incredible market share in the US by chipping away at brand loyalty held by GM, Ford, and Chrysler.

 

[Mellowyellow]

My software is, and always been, very stable. What’s happening with yours that makes it buggy?

Random features just stop working spontaneously. A reset always fixes it.

 

[cohall]

Random features just stop working spontaneously. A reset always fixes it.

That stinks. I wonder why that's happening. Glad a reset fixes it, but still annoying I'm sure. Mine doesn't have that issue at all (that I've noticed anyway).

 

[White Shadow]

.... Audi has existed for a long time, but had no footprint in the US until relatively recently...

Relatively recently? It's been more than 50 years that Audi vehicles have been sold in the North American market. They started along with Porsche as one of VW's divisions/brands right arounds 1970. As a kid, I remember their headquarters in NJ, not far from where I lived.

 

[Autolycus]

Relatively recently? It's been more than 50 years that Audi vehicles have been sold in the North American market. They started along with Porsche as one of VW's divisions/brands right arounds 1970. As a kid, I remember their headquarters in NJ, not far from where I lived.

Compared to the time Ford, GM, Chrysler, etc. have been in the US market that is, indeed, relatively recently. Also, Audi sold just over 12k vehicles in the US in 1991, after the "unintended acceleration" issue (that wasn't their fault at all). Their reputation was garbage in the US. No brand loyalty at all. But by 1996, they sold over 200k, which was an order of magnitude higher than they'd done at any point before. That's a rapid turnaround from a negative brand to a positive one, which is much harder than building a brand from scratch.

 

[Biturbowned]

I was hoping share value would continue to rise, but it looks like the selloff has already begun. Down about $3/share since yesterday's high. Oh well, let's see how it rides out for the remainder of the week.

It’s a joke. Over 200M volume, ~150M short, might as well be a penny stock

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