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VW and Rivian have just announced that the two companies will form a joint venture, bringing Rivian’s software expertise to VW’s products and providing an initial $1 billion, and potentially up to an eventual $5 billion, in capital for Rivian to get through its push to deliver its upcoming R2 vehicle.

Rivian is currently working hard to get costs down in its quest for profitability. While the company has large cash reserves, it’s running through them at relatively rapid rate. The financials get a little bit better each quarter, but there is still a lot of work to be done.

Recently, Rivian announced that it would delay building its plant in Georgia in order to save over $2 billion in the short term, helping reduce pressure on its near-term financials.

Now, today, the company has had another pressure valve released, as VW and Rivian have announced they will form a joint venture to bring Rivian’s software to VW’s EVs, with VW offering an initial $1 billion in capital and potentially up to $5 billion by 2026.

“Our customers benefit from the targeted partnership with Rivian to create a leading technology architecture. Through our cooperation, we will bring the best solutions to our vehicles faster and at lower cost. We are also acting in the best interest of our strong brands, which will inspire with their iconic products. The partnership fits seamlessly with our existing software strategy, our products, and partnerships. We are strengthening our technology profile and our competitiveness.”

Oliver Blume, CEO of Volkswagen Group

The partnership is valuable for VW as well, as software has been its biggest issue recently. VW’s previous CEO, Herbert Diess, stepped down in 2022, and it’s thought that software issues were the main reason for his departure. In 2023, VW hired a former Rivian exec to help with software. It must have liked what it got, as the companies are deepening their relationship now.

The partnership begins with VW offering a $1 billion convertible note to Rivian, which will convert into an equity holding around the end of this year.

In addition, the two companies will establish a 50/50 joint venture around “next generation electrical/electronic architecture.” This will give VW immediate access to Rivian’s software architecture, which has been seen as one of the major strengths of the company.

“We’re very excited to be partnering with Volkswagen Group. Since the earliest days of Rivian, we have been focused on developing highly differentiated technology, and it’s exciting that one of the world’s largest and most respected automotive companies has recognized this. Not only is this partnership expected to bring our software and associated zonal architecture to an even broader market through Volkswagen Group’s global reach, but this partnership also is expected to help secure our capital needs for substantial growth. Rivian was created to help the world to transition away from fossil fuels through compelling products and services, and this partnership is beautifully aligned with that mission.”

RJ Scaringe, Founder and CEO of Rivian

After the establishment of this joint venture, VW says it will invest an additional $4 billion into Rivian, in $1 billion tranches in 2025 and 2026, contingent on Rivian meeting “certain milestones.”

After the announcement, RIVN stock is trading up more than 40% in after hours trading. It had already risen 8% during today’s trading session after an analyst upgrade. Rivian will hold an investor call at 3pm Pacific, 6pm eastern here.

Electrek’s Take

This is great news for Rivian, and great news for VW as well.

However, Rivian has had a number of past partnerships that didn’t turn out.

Rivian had previously partnered with Ford to build Ford/Lincoln EVs and also with Mercedes to build electric vans. Both of those fell through, with the Mercedes deal including a joint venture and the Ford deal including a big investment which Ford later trimmed.

Rivian has also partnered with Amazon to deliver 100,000 delivery vans. That partnership is going well with over 10,000 vehicles delivered, but the exclusivity portion of the contract recently ran out, and now Rivian is looking for more purchasers.

In this case, though, I can see a direct reason for Voltswagen to need Rivian’s help. While their software is a lot better now than it used to be, software has been the achilles heel of traditional auto companies in general, and VW specifically. And with VW’s yearly revenue ($335 billion in 2023), they can spare a little change to fix one of their major problems.

One other interesting note: VW recently spun off its classic Scout brand into a Rivian-like adventure EV. That was seen as an attempt to compete in a market that Rivian is currently the best offering in. We wonder if this partnership will include using Rivian’s expertise for the Scout? Stay tuned.

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Here’s what TSLA analysts are saying about Tesla’s big delivery miss

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Here's what TSLA analysts are saying about Tesla's big delivery miss

Most Wall Street analysts covering Tesla’s stock (TSLA) badly misread the automaker’s delivery volumes this quarter. Some of them have started releasing notes to clients following Tesla’s production and delivery results.

Here’s what they have to say:

According to Tesla-compiled analyst consensus, the automaker was expected to report “377,592 deliveries” in the first quarter.

Tesla confirmed yesterday that it delivered only 336,000 electric vehicles during the first three months of 2025.

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  • Cantor Fitzgerald was the first analyst firm to issue a note after the release. They reaffirmed their overweight rating with a $425 price target. As we previously reported, Cantor has some major conflicts of interest with Tesla and CEO Elon Musk.
  • Truist Securities maintained its hold rating on Tesla’s stock, but it greatly lowered its price target from $373 to $280 a share. They insist that while their earnings expectations have crashed because they overestimated deliveries, investors should focus on Tesla’s self-driving effort, which they see as “much more important for the long-term value of the stock.”
  • Goldman Sachs lowered its price target from $320 to $275 a share. The firm expected 375,000 deliveries from Tesla in Q1 and therefore had to adjust its earnings expectations with almost 40,000 fewer deliveries.
  • Wedbush‘s Dan Ives, one of Tesla’s biggest cheerleaders, called the delivery results “disastrous”, but he reiterated his $550 price target on Tesla’s stock.
  • UBS has reiterated its $225 price target which it had lowered last month after adjusting its delivery expectations in Q1 to 367,000 – one of the more accurate predictions on Wall Street.
  • CFRA‘s analyst Garrett Nelson reduced his price target from $385 to $360 a share.

Electrek’s Take

I find it funny that most of them are maintaining or barely changing their expectations after they were so wrong about Tesla in Q1.

If you were so wrong in Q1, you should expect to be incorrect also for the rest of the year, and readjust accordingly.

But Cantor is invested in Tesla, and the firm is owned by Elon’s friend, who happens to now be the secretary of commerce. Truist still believes Elon’s self-driving lies, Goldman Sachs overestimated Tesla’s deliveries by the equivalent of $2 billion in revenues, and Dan Ives is Dan Ives.

Covering Tesla over the last 15 years has confirmed to me that most Wall Street analysts have no idea what they are doing – or at least not when it comes to companies like Tesla.

Do you know any who have been consistently good lately? I’d love suggestions in the comment section below.

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Fintech stocks such as Affirm, PayPal plunge on concern Trump tariffs will hurt consumer spending

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Fintech stocks such as Affirm, PayPal plunge on concern Trump tariffs will hurt consumer spending

The global market rout on Thursday, sparked by President Donald Trump’s announcement of widespread tariffs, had an outsized effect on fintech companies and credit card issuers that are closely tied to consumer spending and credit.

Affirm, which offers buy now, pay later purchasing options, plunged 19%, while stock trading app Robinhood slid 10% and payments company PayPal fell 8%. American Express and Capital One each tumbled 10%, and Discover was down more than 8%.

President Trump on Wednesday laid out the U.S. “reciprocal tariff” rates that more than 180 countries and territories, including European Union members, will face under his sweeping new trade policy. Trump said his plan will set a 10% baseline tariff across the board, but that number is much higher for some countries.

The announcement sent stocks reeling, wiping out nearly $2 trillion in value from the S&P 500, and pushing the tech-heavy Nasdaq down 6%, its worst day since the start of the Covid-19 pandemic in 2020.

The sell-off was especially notable for companies most exposed to consumer spending and global supply chains, including payment providers and lenders. Fintech companies that rely on transaction volume or installment-based lending could see both revenue and credit performance deteriorate.

“When you go down the spectrum, that’s when you have more cyclical risk, more exposure to tariffs,” said Sanjay Sakhrani, an analyst at Keefe, Bruyette & Woods, citing PayPal and Affirm as businesses at risk. He said bigger companies in the space “are more defensive” and better positioned.

Visa, Mastercard and Fiserv held up better on Thursday.

Dan Dolev, an analyst at Mizuho, said bank processors such as Fiserv are less exposed to tariff volatility.

“It’s considered a safe haven,” he said.

Affirm executives have previously said rising prices might increase demand for their products. Chief Financial Officer Rob O’Hare said higher prices could push more consumers toward buy now, pay later services.

“If tariffs result in higher prices for consumers, we’re there to help,” O’Hare said at a Stocktwits fireside chat last month. Affirm CEO Max Levchin has offered similar comments.

However, James Friedman, an analyst at SIG, told CNBC that delinquencies become a concern. He compared Affirm to private-label store cards, and pointed to historical trends in credit performance during downturns, noting that “private label delinquency rates run roughly double” in a recession when compared to traditional credit cards.

“You have to look at who’s overexposed to discretionary,” he said.

Affirm did not provide a comment but pointed to recent remarks from its executives.

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Mazda’s $20,000 Chinese EV is about to launch overseas and a new SUV is up next

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Mazda's ,000 Chinese EV is about to launch overseas and a new SUV is up next

Wait, Mazda sells a real EV? It’s only in China for now, but that will change very soon. The first Mazda 6e built for overseas markets rolled off the assembly line Thursday. Mazda’s new EV will arrive in Europe, Southeast Asia, and other overseas markets later this year. This could be the start of something with a new SUV due out next.

Mazda’s new EV rolls off assembly for overseas markets

The Mazda EZ-6 has been on sale in China since October with prices starting as low as 139,800 yuan, or slightly under $20,000.

Earlier this year, Mazda introduced the 6e, the global version of its electric car sold in China. The stylish electric sedan is made by Changan Mazda, Mazda’s joint venture in China.

After the first Mazda 6e model rolled off the production line at the company’s Nanjing Plant, Mazda said it’s ready to “conquer the new era of electrification with China Smart Manufacturing.”

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The new global “6e” model will be built at Changan Mazda’s plant and exported to overseas markets including Europe, Thailand, and other parts of Southeast Asia.

Mazda calls it “both a Chinese car and a global car,” with Changan’s advanced EV tech and Mazda’s signature design.

Mazda-first-EV-overseas
Mazda 6e electric sedan during European debut (Source: Changan Mazda)

Built on Changan’s hybrid platform, the EZ-6 is offered in China with both electric (EV) and extended-range (EREV) powertrains. The EV version has a CLTC driving range of up to 600 km (372 miles) and can fast charge (30% to 80%) in about 15 minutes.

Mazda’s new EV will be available with two battery options in Europe: 68.8 kWh or 80 kWh. The larger (80 kWh) battery gets up to 552 km (343 miles) WLTP range, while the 68.8 kWh version is rated with up to 479 km (300 miles) range on the WLTP rating scale.

At 4,921 mm long, 1,890 mm wide, and 1,491 mm tall, the Mazda 6e is about the size of a Tesla Model 3 (4,720 mm long, 1,922 mm wide, and 1,441 mm tall).

Mazda said the successful rollout of the 6e kicks off “the official launch of Changan Mazda’s new energy vehicle export center” for global markets.

The company will launch a new SUV next year and plans to introduce a third and fourth new energy vehicle (NEV).

Although prices will be announced closer to launch, Mazda’s global EV will not arrive with the same $20,000 price tag in Europe as it will face tariffs as an export from China. Mazda is expected to launch the 6e later this year in Europe and Southeast Asia. Check back soon for more info.

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