Wedbush raised Rivian’s price point from $15 to $20 and is maintaining its Outperform rating for the EV automaker after its deal with Volkswagen.
“Huge win for RJ and Rivian and takes the biggest bear thesis around capital off the table. Still, wood to chop but a win,” commented Dan Ives on Wedbush’s latest move.
Recently, Volkswagen announced a significant move, taking a $5 billion stake in Rivian. This strategic partnership is set to alleviate cash concerns and cut costs, paving the way for Rivian’s future growth. With Volkswagen’s support, the American EV automaker is gearing up to scale production as it prepares to roll out two new models.
This is exciting! Volkswagen Group CEO Oliver Blume and I are thrilled to announce the formation of a joint venture between our two companies. This partnership brings Rivian’s software and zonal electronics platform to a broader market through Volkswagen Group’s global reach and… pic.twitter.com/11XVNUo89J
— RJ Scaringe (@RJScaringe) June 25, 2024
Rivian has already reduced costs in producing the newest R1T and R1S iterations. The company’s retooling at its Illinois factory resulted in massive cost savings in R1T and R1S production. So, it would be interesting to see what Rivian would accomplish with Volkswagen.
The German automaker’s investment in Rivian isn’t one-sided. RJ Scaringe’s X post about the joint venture hints that Volkswagen will gain access to Rivian’s software and technology, boosting the European automaker’s EV lineup.
“This partnership brings Rivian’s software and zonal electronics platform to a broader market through Volkswagen Group’s global reach and scale while providing an expected $5 billion of capital to Rivian as we bring R2 and our next generation of vehicles to market!” RJ Scaringe states in an X post.
If you have any tips, contact me at maria@teslarati.com or via X @Writer_01001101.
