Volkswagen and Rivian Form Joint Venture, Deepening Alliance

Published On Nov 12, 2024, 4:11 PM

Volkswagen has announced a $5.8 billion joint venture with Rivian to develop vehicle software and electronics, a significant step in their partnership initially set in June. Volkswagen aims to enhance its software capabilities as it struggles in the U.S. electric vehicle market, holding only 3.4% market share. Rivian continues to lose money, reporting a $1.1 billion loss in Q3, despite positive reviews for its vehicles. The partnership may signal a trend of established automakers collaborating with newer companies to improve profitability and technology.

Read full article

Stock Forecasts

RIVNView RIVN chart on TradingView

Negative

Rivian, despite receiving positive feedback on its vehicles, continues to face challenges in terms of production and profitability. The partnership with Volkswagen may help address some of these issues in the long run. However, current financial losses and decreasing vehicle deliveries make Rivian's stock uncertain in the short term. Investors should be cautious as Rivian navigates supply chain issues while depending on the outcomes of this partnership.

Related News

Rivian stock drops as full-year loss projection widens, but 'modest gross profit' still expected in Q4

Nov 8, 2024, 9:56 AM

Rivian reported third quarter revenue that missed the mark and a wider-than-expected loss as the pure-play adventure electric vehicle maker was burdened by a supplier parts issue.

RIVN

E.V. Tax Credits Are a Plus, but Flaws Remain, Study Finds

Oct 7, 2024, 8:21 AM

The Inflation Reduction Act was a compromise between competing priorities. Evaluating the law on the effectiveness of the $7,500 tax credit for E.V.s is tricky.

RIVN