RIVN - Will Volkswagen Be Rivian's Next Failed Joint Venture?
2024-07-20 06:15:00 ET
Rivian Automotive (NASDAQ: RIVN) just inked a deal with Volkswagen that Fisker dreamed of as it was reaching for help before eventually filing for bankruptcy. That's not to say Rivian is anywhere near the position Fisker found itself in. Still, the potential $5 billion joint venture with Volkswagen will be huge for the start-up electric vehicle maker to power through the launch of its critically important R2 SUV.
Let's break down the joint venture with Volkswagen, look into the past to see a similar instance that fell through, and consider why investors should remain optimistic this time.
Rivian and Volkswagen agreed to form a joint venture to create next-generation electrical architecture and "best-in-class" software technology. The basic idea is to combine strengths to lower cost per vehicle, increase scale, and speed up innovation.
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Will Volkswagen Be Rivian's Next Failed Joint Venture?