With its stock down nearly 90% since going public, investors have all but given up on Rivian — the electric truck manufacturer that’s losing $39K per vehicle. Despite delivering over 100K vehicles and receiving backing from Amazon and Ford, Rivian still struggles to make ends meet. Now Volkswagen, whose roof is also “on fire,” hopes a new partnership will provide a much-needed boost for both companies.
- This week, Volkswagen announced a significant investment of “up to $5B in Rivian” through a joint venture to leverage their combined resources.
- The news sent Rivian’s shares soaring over 19%, pushing its valuation to over $14B — its highest level in nearly four months.
Can two negatives create a positive? Both companies stand to benefit from this partnership. For Rivian, the capital and stability of its one-time competitor might be a financial saving grace — especially as it continues to lose double what it generates in revenue. And for Volkswagen, which is woefully behind the curve in EV and self-driving tech, a startup mindset might help power it into EV dominance… even if it takes some time to pay off.
