Rivian gets another $1B from Volkswagen
The winter testing phase for the VW ID EVERY1 has been successfully completed, marking a significant milestone in the collaborative efforts between Rivian and the Volkswagen Group. This vehicle is the inaugural model to incorporate Rivian’s software and electrical architecture under this joint venture, demonstrating not only progress towards delivering the vehicle to consumers but also triggering an additional $1 billion investment from Volkswagen Group into Rivian.
Of this investment, approximately $750 million will be allocated as an equity investment, while the remaining $250 million will fall under either equity or convertible debt, contingent on the specific prototypes that Volkswagen Group supplied to Rivian for testing purposes.
Volkswagen has previously committed over $3 billion to Rivian as part of this collaboration. Furthermore, Rivian is prepared to access an additional borrowing capacity of up to $1 billion from Volkswagen Group starting in October. Following the market introduction of the first vehicle utilizing the technologies from this joint venture, Rivian is set to receive an additional $460 million in equity from Volkswagen. Cumulatively, this agreement holds the potential to reach an expansive total value of $5.8 billion for Rivian.
The timing of this milestone payment from winter testing is fortuitous, occurring just months before Rivian is set to launch sales of the R2 SUV, which founder and CEO RJ Scaringe has indicated may be "the most important thing we’ve launched to date." Rivian is aiming for a rapid scaling of R2 production and sales in the near future.
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