Winter testing of VW ID.EVERY1 has been completed. It is the first vehicle under a joint venture between Rivian and the Volkswagen Group to be equipped with the EV maker’s software and electrical architecture. It’s not just the progress we’re making towards getting this vehicle into customers’ hands. It also enables a new $1 billion investment in Rivian from the Volkswagen Group.
Approximately $750 million will be obtained in the form of equity investments. The remaining $250 million will be either equity or convertible debt, depending on the prototype that Volkswagen Group provides to Rivian for testing. (The companies did not immediately disclose this.)
The German auto giant has already invested more than $3 billion in Rivian as part of the joint venture. More to come. Starting in October, Rivian will be able to borrow up to $1 billion from Volkswagen Group. Rivian will also receive an additional $460 million in equity investment from Volkswagen after the first vehicle using the joint venture’s technology is launched. All told, the deal could be worth $5.8 billion to Rivian.
The winter test milestone payment comes just months before Rivian begins selling its R2 SUV, which founder and CEO RJ Scaringe said is “probably the most important thing we’ve ever launched.” Rivian looks forward to rapidly expanding production and sales of the R2.
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