Interesting Video on Rivian & VW

[captainjp]

Maybe in NJ. On the west cost, Rivian is everywhere. People know what Rivian is.

On your original point, the JV and direct investment into Rivian assures them first right of refusal to acquire the rest of the company, if they so chooses to.

The auto industry is filled with brands being bought and sold to each other. Not just small names but large ones too. Just go back couple of decades and see the story of Chrysler.

After the government bail out (too big to fail...), Chrysler did okay for a while but then sold itself to Daimer-Benz for $36B only to be sold off few years later at only $6B to Fiat. Fiat became Fiat-Chrysler until they merged with Peugeot/PSA and formed Stallantis. Who knows how long Chrysler will last at this point. Ford bought Jaguar-Rover-Aston Martin only to sell of all of them a decade later to Tata Motors for the former two and spun off Aston Martin to a private equity at the time.

What the VW investment said to me was that Rivian's future is secured and probably will become one of the VW brand one day. Perhaps their EV brand while the others will continue to make ICE/hybrid vehicles.

Rivian is everywhere in NJ as well.

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[TexasBob]

As a customer and owner of a Rivian vehicle, this is nothing but great news both near term and long term.

As an investor in Rivian (which I am not, ftr), this is also good news though it does underscore the point that Rivian is on pretty shaky financial footing at the moment (no surprise to anyone) and their long term prospects as a stand-alone auto manufacturer are far from assured (of course).

Rivian's market cap is $10.3 B today. If it drops another $5 it will make more sense for VW to buy it and kill off the new plant in South Carolina. It might make sense in any case. My 2c.

 

[mkg3]

As a customer and owner of a Rivian vehicle, this is nothing but great news both near term and long term.

As an investor in Rivian (which I am not, ftr), this is also good news though it does underscore the point that Rivian is on pretty shaky financial footing at the moment (no surprise to anyone) and their long term prospects as a stand-alone auto manufacturer are far from assured (of course).

Rivian's market cap is $10.3 B today. If it drops another $5 it will make more sense for VW to buy it and kill off the new plant in South Carolina. It might make sense in any case. My 2c.

Agree, except for a small detail - Rivian has to agree to be acquired.

Not yet and probably not unless RJ wants to exit after showing a profit so that the value can double or triple for a sale. Or on a blink of insolvency - whichever comes first....

 

[Oldsmobile_Mike]

The comments are ? Definitely just thumbs-downed the video without hitting play and closed the tab.

 

[electruck]

Yes, for sure. But if Rivian goes under, it essentially becomes VW's software. Not like it's a licensing deal or anything....the software and architecture will be VWs. So if Rivian ceases to exist, then Scout will take over with Rivian's software running it. As an investor, I'm not sure how I feel about the Scout brand being such a competitve vehicle, even with VW and Rivian working together. Seems like a bit of a conflict and I can only see the advantage for VW if the cash infusion isn't enough to sustain Rivian.

If Rivian goes under. Do you understand what happens if Rivian goes under? All of their assets, which includes all of their IP, go up for sale through bankruptcy proceedings. Now, VW basically just gets first dibs. This is a total nothingburger.

 

[strykerwsu]

I get all my financial advice and wisdom from YouTube and TicTok.

 

[Robin]

JFC another doom post.

???

 

[Paul Hackett]

Maybe in NJ. On the west cost, Rivian is everywhere. People know what Rivian is.

On your original point, the JV and direct investment into Rivian assures them first right of refusal to acquire the rest of the company, if they so chooses to.

The auto industry is filled with brands being bought and sold to each other. Not just small names but large ones too. Just go back couple of decades and see the story of Chrysler.

After the government bail out (too big to fail...), Chrysler did okay for a while but then sold itself to Daimer-Benz for $36B only to be sold off few years later at only $6B to Fiat. Fiat became Fiat-Chrysler until they merged with Peugeot/PSA and formed Stallantis. Who knows how long Chrysler will last at this point. Ford bought Jaguar-Rover-Aston Martin only to sell of all of them a decade later to Tata Motors for the former two and spun off Aston Martin to a private equity at the time.

What the VW investment said to me was that Rivian's future is secured and probably will become one of the VW brand one day. Perhaps their EV brand while the others will continue to make ICE/hybrid vehicles.

Concur.

 

[runwithscissors]

It's like 2 drunks holding each other up. I so wish I leased mine but the program wasn't available at the time.

 

[Birdowin]

I've never heard of WSM and don't believe a word of what they are saying. I certainly don't believe that Rivian is losing "Tens of thousands" of dollars on every vehicle they sell. This is a great example of anyone can say anything they want on a Utube video whether it is true or not. Don't know what their motivation is but I think it is total bullshit!

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