Volkswagen (VW) and US electric vehicle (EV) startup Rivian Automotive have emerged as trending companies among influencers on social media platform ‘X’, following the German automaker’s announcement of a strategic investment of up to $5 billion in Rivian. The partnership is seen as mutually beneficial as Volkswagen gains access to Rivian’s advanced software-defined vehicle architecture while Rivian gains essential capital to support its operations and support future development, reveals the social media analytics platform of GlobalData, a leading data and analytics company.
Shreyasee Majumder, Social Media Analyst at GlobalData, comments: “Influencers view the VW-Rivian joint venture and investment as a vital lifeline for Rivian, avoiding potential bankruptcy and enabling expansion into new vehicle segments. They highlight that the financial injection will have a positive impact on Rivian’s production capabilities and market position, potentially paving the way for future collaborations and shared platforms with Volkswagen’s new range of electric SUVs. However, some influencers remain uncertain about the long-term success and sustainability of the partnership.”
Below are some of the opinions of popular influencers captured by GlobalData’s social media analytics platform:
- Alex Voigt, author:
“The Rivian joint venture is a nearly risk-free and obvious deal for VW, but it could also be doomed to failure later. The details show that the deal is a very good deal for VW, but Rivian’s desperation also shows that without it, the company could have gone bankrupt very soon. The terms of the deal for Rivian are very bad and one wonders how long the lifeline VW has thrown will keep the company afloat. VW will buy Rivian for $10.83 per share. That means nearly 100 million shares for $1 billion, a dilution of about 10% and a 4.75% stake on top of that. To name just one example of how due diligence is not VW’s favorite skill: the company wrote off $1.9 billion it invested in Argo AI before 2022. At the time, they made a huge press release explaining that VW vehicles would drive with Argo AI software fully autonomously. Well, that didn’t end well.
- Gary Black, Managing Partner of The Future Fund LLC:
“With VOW as a strategic partner, the risk of RIVN going bankrupt – to the extent that some investors were concerned – is now averted. The $3 billion cash investment (plus $2 billion for the new software joint venture) should eliminate the steep EV/Rev 2024 valuation discount that RIVN trades at (3.3x AH) versus TSLA (5.9x). RIVN can now move downstream and build its new Georgia facility to expand its TAM to the affordable luxury segment with R2 ($45,000 ASP) and the mass segment with R3 ($35,000 ASP). Once VOW converts $3 billion of new convertible notes into RIVN stock, we estimate VOW will own 15-20% of RIVN.”
- Sean O’Kane, senior transportation reporter at TechCrunch:
“A very important and interesting deal (investment + new joint venture) between @Rivian and @VWGroup. Rivian gets more money and institutional support in these uncertain times, and VW gets some much-needed software help. Will it work?”
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- Jesse Jenkins, assistant professor at Princeton University:
“Huge news for @Rivian! @VW is investing up to $5 billion in the EV startup, helping fund the development of the R2 SUV, while VW gains access to Rivian’s software-defined vehicle architecture. This is a major capital injection for Rivian that helps it navigate the Death Valley to scale and positive gross margins. Will we even see another shared platform collaboration for VW’s new “rugged” Scout electric SUV brand soon?”
- Ross Gerber, President and CEO of Gerber Kawasaki Wealth & Investment Management:
“Great news for Rivian. VW is investing $5 billion, which will keep them afloat for a while. The vehicles are great, but they need operational help. This could be the solution… $RIVN”
