Rivian Soars on Volkswagen’s $5 Billion Investment

Rivian shares surged in its biggest intraday rise since November 2021 on Wednesday after Volkswagen said it plans to establish a joint venture and invest up to $5 billion until 2026 in the electric-car maker. Cox Automotive Director of Industry Insights Stephanie Valdez Streaty joins Ed Ludlow to discuss on "Bloomberg Technology."
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[@tonystorcke]

Rivian becomes the repair and design shop for VW. Very nice.

[@williamelkington5430]

Companies have tried to push Rivian around through notional JV relationships. Rivian hasn't liked being pushed around. And they won't like it, as far as I can tell, when it comes to VW and any other potential business partner. The conventional wisdom here and elsewhere is that the R2 will be a Model Y competitor. This is mostly silly. The R2 will be an off-roader first and foremost. The Model Y isn't. R2 will define a new competitive space no one has yet occupied.

[@kenyattaclay7666]

You are correct that the R2 won’t actually be a direct competitor to the model Y but you are incorrect when you say they are carving out a space that is yet to be occupied. The R2 will actually compete with the Bronco Sport, the higher trims of the Subaru Outback and a little bit with the RAV4 Prime. While the R2 will be off road capable it’s not going to be a rock climber. It’s going to be a car you take to go camping, to the cabin, to the beach or maybe a little overlanding. It is also going to attract people who would like to have a Bronco Sport or Outback with a plug but can’t get it because they don’t exist.

[@williamelkington5430]

@@kenyattaclay7666 We disagree.

[@henrywhh]

Volkswagen