Sean McLain of The Wall Street Journal reports on Volkswagen’s investment in Rivian.
- Volkswagen Group is investing $1 billion in Rivian Automotive, with plans to invest up to $5 billion total, including $2 billion for a joint software company and a potential $3 billion stake in Rivian over time.
- The deal provides Rivian with much-needed financial support while helping VW bolster its struggling software unit.
- While its technology is promising, Rivian has hemorrhaged money which has forced the company to redesign its vehicles with cost front of mind.
“Rivian’s R1T pickup, R1S SUV and battery-powered delivery van were a success with customers and critics, but the company struggled to turn a profit on them. The company reported a gross loss of $39,000 on every vehicle it sold in the first three months of the year.”
Read the full article here.
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