Is Rivian Stock a Buy After the $5 Billion Volkswagen Investment?
How much equity will Volkswagen take in Rivian?
Volkswagen plans to take an initial $1 billion equity stake in Rivian through an unsecured convertible note that will exchange into Rivian shares on or after December 1. Additionally, the German automaker intends to invest an additional $2 billion in Rivian shares via two equal tranches in 2025 and 2026.
What technologies will the joint venture develop?
The joint venture between Volkswagen and Rivian will focus on developing state-of-the-art EV software and next-generation electrical/electronic (E/E) architecture3. This collaboration aims to co-develop the next-generation (E/E) architecture and software stack for software-defined vehicles (SDVs).
What is the total value of the Volkswagen-Rivian deal?
The total value of the Volkswagen-Rivian deal is $5 billion. This includes Volkswagen's initial $1 billion equity stake in Rivian, an additional $2 billion investment in Rivian shares in 2025 and 2026, and $2 billion invested into the joint venture through a combination of cash payments and loans.