Rivian needs capital as it struggles with the slowdown in EV demand growth.
Share on linkedin The battle for the EV future pits legacy automakers against swashbuckling startups, but the new VW- Rivian tie-up suggests a third way forward., VW's plan to invest up to $5 billion in Rivian is a major validation of Rivian 's tech and an acknowledgment by VW that it's playing catchup in the global EV race.
VW plans an initial investment of $1 billion in the startup that makes SUVs and pickups for the consumer market and supplies vans to Amazon. They see near-term benefits from VW use of Rivian's systems, and they both hope to launch vehicles using tech from the JV later this decade.Incumbents like VW have scale and balance sheets fortified by profitable petro-powered lines, while newcomers often bring impressive tech and buzz.
"The cost of continuing to go it alone is too high and investors are less keen on EV companies than when Rivian started," University of Michigan business professor Erik GordonEdmunds analyst Jessica Caldwell said
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