Rivian Teases 5 New EVs After $5 Billion VW Investment

The legendary German auto giant pledges a $5 billion investment in the American EV startup by 2026.

German car marque VW announces a $5 billion investment in Rivian as the latter prepares 5 new EVs in the coming years. Rivian is celebrating the success of the R1T and R1S but the overall business is struggling. In fact, in the first quarter itself, the American EV startup lost a whopping $1.45 billion. Hence, it is evident that there is still a long way to go before it achieves substantial profitability. The pledged $5 billion funds will be crucial in easing the pressure a bit and smoothen that route to become profitable.

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Rivian EVs Teased After VW Announced $5 Billion Investment

The Volkswagen Group will commence this sizeable investment with a $1 billion amount via an unsecured convertible note which will convert into common stock in December. Thereafter, VW will release the second phase of funding with $2 billion in 2025. This will be in two stages of $1 billion each. The final instalment of the remaining $2 billion will arrive in the joint venture in 2026.

Upcoming Rivian EVs

Note that the updated Rivian R1T and R1S electric cars utilize the Gen 2 platform. In addition to that, the upcoming mid-size platform will underpin R2 and R3 crossover EVs along with another mysterious model. Some online reports mention that it might well be a mid-size pickup truck. That is in line with the future strategy of the brand to launch more affordable vehicles.

I had reported a few weeks ago about the Rivian R2 crossover spotted testing on the streets. It will be built in Illinois and bear a price tag in the vicinity of $45,000. Also, we will most likely see the R2 at dealer showrooms in the first half of 2026. Furthermore, the R3 will be even cheaper than the R2 and will launch after the R2. Finally, there will also be three more models using the “affordable mass market” architecture.

The funds from Volkswagen will go into the 50/50 joint venture for the “creation of next-generation electrical/electronic architecture (E/E-architecture) for electric vehicles.” Rivian also informs that the money will help fund their “operations through the ramp of R2 in Normal as well as the midsize platform in Georgia – enabling a path to positive free cash flow and meaningful scale.”

The American EV startup is excited to use the global reach, knowledge, expertise, etc. of VW which will ensure that Rivian’s core technology will reach the masses rapidly. VW will integrate Rivian’s software-defined vehicle (SDV) platforms in their upcoming EVs. This will be possible as Rivian will offer its expertise in electrical architectures and license intellectual property rights to the joint venture. VW wants to shift from its existing in-house Cariad software division after repeated delays in its fourth-generation software platforms which led to delays in the launches of Audi Q6 e-tron and Porsche Macan Electric multiple times.

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Learn Electric Cars Says

It is heartening to see a partnership of the latest EV startup players with the legacy carmakers. Unfortunately, the previous two attempts of Rivian securing a deal with Ford and Mercedes have not succeeded. Still, that is a part of business. What matters is the existing commitment from an industry veteran like Volkswagen. It remains to be seen how well Rivian utilizes this amount to turn the company profitable. If they invest it prudently in upcoming mass-market EVs, Rivian could emerge as one of the most successful new EV startups in the world.