Major car brand invests BILLIONS in EV maker in bid to rival Tesla – as company strengthens ties in Europe and Asia

A MAJOR car brand is investing billions in an electric vehicle maker as it aims to take on Tesla.

Electric vehicle startup Rivian will have £3.95 billion ($5 billion) injected after closing the deal.

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The money will come from German manufacturer Volkswagen, with the companies sharing software and EV platforms.

Electric vehicle start-ups have faced problems due to slowing demand, as well as high interest rates and a lack of cash.

Meanwhile, established automakers have struggled to build electric vehicles as well as advanced software.

US electric vehicle maker Fisker filed for bankruptcy protection last week and earlier this year the UK arm of electric van producer Arrival went into administration.

Robert ‘RJ’ Scaringe, founder and CEO of Rivian, said Volkswagen’s money will allow it to develop its R2 SUVs, which are expected to hit the streets in early 2026, as well as its planned R3 crossovers.

The equally owned joint venture will also help reduce Rivian’s operating costs due to supplies including components and microchips.

It will also help Rivian with its cash flow problems, as it currently loses almost £31,600 ($40,000) on every vehicle it delivers.

Under the deal, Rivian, which is seen as a rival to Tesla, will receive an immediate investment of 790 million pounds ($1 billion) through a note that will be converted into Rivian shares on December 1, subject to approval. regulatory.

VW will also pay a further £790 million when the joint venture arrives, which is likely to be in the last three months of the year.

Volkswagen will then invest a further £790m in Rivian shares in 2025 and the same amount in shares the following year, provided Rivian reaches certain milestones and provides a £790m loan in 2026.

Vitaly Golomb, managing partner at Rivian investor Mavka Capital, said: “Any cash infusion like this is huge.

“Gaining the support of the Volkswagen Group certainly strengthens its story in relation to Europe and, eventually, Asia.”

Investors and analysts see VW’s cash injection as a way to solve its software problems.

Its Cariad software division, created by then VW Group chief Herbert Diess, ran over budget and failed to achieve its objectives.

Diess left VW in September 2022.

Rivian, founded in 2009, has been cutting costs in an attempt to stay afloat while trying to deliver its electric vehicles on time.

Contracts with suppliers were renegotiated and some parts were built in-house.

The Sun’s verdict on the Rivian R1T and R1S

By Ben Shimkus

The Rivian R1T, one of the fastest-growing electric vehicles in the US, has dozens of hidden features loaded into its Amazon-inspired cabin.

I got a tour of the Rivian R1T pickup truck and R1S three-row SUV at the company’s showroom in New York City’s Meatpacking District.

The luxurious cabins inside the $70,000-plus trucks are filled with hordes of gadgets and gizmos.

But a button, resting on the steering wheel, gives drivers control far beyond the road.

Drivers can even use their voice to access the system instead of a button.

All Rivian trucks have Amazon Alexa capabilities built into the interior.

Drivers can give dozens of voice commands through their cars, according to Amazon.

The button, resting on the left side of the steering wheel, will open Alexa to fulfill the Rivian driver’s request.

If the system is fully voice-operated, drivers will also be able to access Amazon-based features with their own voice.

Drivers can also make more car-based requests.

“Alexa, take me home,” says the company, drivers can command the car.

When activated, Alexa will open Rivian’s proprietary navigation screen to suggest routes to incorporate fast charging.

It has not yet recorded a quarterly profit, while in the first quarter of this year it recorded a net loss of more than 1.11 billion pounds ($1.4 billion), according to the BBC.

So far, the company has produced two models for the American consumer market.

The R1S, the company’s first consumer SUV, has sold more than 23,000 production models as of 2023.

The R1T, the second-fastest mass-market pickup truck with a 0-60 mph time of 3 seconds, sold just under 20,000 iterations last year.

Customers have reported historically high satisfaction numbers with their Rivians.

Rivian had the highest customer satisfaction rating on record, according to Consumer Reports.

However, the company was not without problems.

Rivian was one of the worst automakers with quality problems reported by customers, according to a study by the publication.

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