VW will invest up to $5B into Rivian to form joint venture for next-gen EVs
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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The BYD “Shenzhen” set sail on its first voyage overseas this week. With 9,200 parking spots, or about enough to fill 20 football fields, BYD’s new car transport ship is now the world’s largest.
BYD’s largest car carrier sets sail for Brazil
BYD’s Shenzhen is on its maiden voyage to Brazil after setting sail on April 27. The vessel is carrying over 7,000 new energy vehicles (NEVs), including electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs). It’s the largest single batch of NEVs exported from China so far.
The new vessel is BYD’s fourth car transport ship and the world’s largest, capable of carrying 9,000 vehicles. According to the company, that’s enough to fill about 20 football fields.
BYD launched its first car carrier, the Explorer No 1, in January 2024. It has already completed several trips to Germany, Spain, and Brazil.
Its second, the BYD Changzhou, set sail in December 2024, followed by the Hefei earlier this year. All three vessels can carry up to 7,000 vehicles, making the Shenzhen the largest so far.
The Shenzhen is named after the automaker’s hometown and demonstrates “BYD’s firm determination to promote sustainable development in Brazil.”
BYD is preparing to launch two more vessels, the Changsha and Xi’an. The Changsha is expected to launch soon, while the Xi’an was introduced on April 2.
The new car carriers will help accelerate BYD’s aggressive overseas expansion. In the first three months of 2025, the company sold over 206,000 NEVs overseas, more than double the number it sold last year.
BYD sells a wide range of vehicles in Brazil, including the low-cost Dolphin Mini, starting at around $20,000 (99,800 BRL). In October, it launched its first hybrid pickup truck, the Shark, starting at 379,800 BTL ($66,900).
Brazil is only one overseas market that BYD is targeting. BYD’s sales are expected to double in Europe in 2025, with significant growth in other key regions like Southeast Asia, Japan, Mexico, and South Korea, to name a few.
Source: BYD
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‘Tesla homes’ in a Houston neighborhood where all the homes have Tesla solar roofs and Powerwalls went for sale.
7 out of the 11 homes have reportedly already sold.
Tesla neighborhood is a term that is being used for new developments where all the homes integrate all or part of Tesla’s power ecosystem, including the Powerwall home battery pack.
The best example is a giant new development project in Austin, Texas, by Brookfield Asset Management and Dacra in which up to 12,000 new homes are to be built and offering Tesla solar roofs and Powerwalls.
However, since the announcement, it looks like only some of the homes in the new neighborhood have Tesla energy systems.
In 2022, Tesla also announced a similar project in Las Vegas.
A year later, the company claimed to have deployed “over 600 solar neighborhoods” worldwide, with a total capacity exceeding 100 MW.
One such ‘Tesla neighborhood’ is a small block of 11 townhouse homes featuring Tesla solar roofs and Powerwalls in Houston, Texas.
The homes were recently completed and went on sale, starting at $544,900.
Here are some pictures from the listings:
Utopia Homes, the developer behind the project, described the properties (via Chron):
Step into modern elegance expertly crafted by Utopia Homes. This property showcases groundbreaking Tesla Solar Roof Shingles and Power Wall technology, ensuring 100% energy security and eliminating electric bills for a truly sustainable lifestyle.
The house has proved popular according to the real estate agents, with 7 out of 11 homes already sold.
As we recently reported, Tesla’s solar roofs have proven to be a more expensive and niche product than the company previously presented.
Tesla has largely stopped discussing it, but it is still being deployed through some third-party installers, such as in this case, on new homes.
However, its Powerwall product remains a very popular solution for homeowners seeking greater energy independence and protection against outages, which have been a frequent problem in Texas.
More homeowners are turning to generators, and alternatives like home battery packs are gaining popularity.
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Canadian electric propulsion specialist Vision Marine continues to graduate beyond advanced outboard motors into a provider of all-electric boats. This month, Vision introduced two new electric pontoon boats – the 12-passenger V24 and 15-passenger V30, each capable of a range up to 90 nautical miles.
Vision Marine Technologies ($VMAR) is a Canadian technology company with over 25 years of experience in the marine industry. The company made waves (literally) by introducing its E-Motion turnkey powertrain system, which it has since integrated into a catamaran speedboat, which set a speed record of 109 mph in 2022.
Since then, Vision has introduced six hp two-cruiser vessels – the Fantail 217 and Volt 180, each capable of transporting 10 passengers via its E-Motion technology. Most recently, Vision Marine has integrated the full power of its 180 hp electric powertrain technology into two additional vessels, both electric pontoon boats.
Earlier this month, the company officially began sales of the Vision V24 and V30, which you can view below.
Vision Marine brings power and range to electric pontoons
According to Vision Marine Technologies, orders for its two new electric pontoon boats are now open, and they are touting the same E-Motion technology that put the company on the map a few years ago.
The first model is the V24, a 12-passenger electric pontoon that is 24′ 8″ in length and has 180 hp. The ultra-quiet E-Motion powertrain is powered by a standard 43 kWh marine battery pack, offering 40 nautical miles (46 miles) of all-electric range on a single charge. For added range, Vision sells a version of the electric pontoon with a second battery pack, totaling 86 kWh and delivering up to 90 nautical miles (104 miles) of range.
While the V24 offers more of a classic attempt at the pontoon boat, Vision’s additional new vessel, the all-electric V30, is a tad sportier and provides room for more passengers aboard (15). This 30′ vessel features the same E-Motion powertrain options, complete with the same two battery configurations to offer the same ranges as the V24.
However, the V30 has additional features such as 4 x 6.5″ interior speakers and cool-touch seats. Both models feature an integrated onboard charger that supports both 120- 240V (30 to 50 amps) for seamless charging, no matter the dock plug while moored.
The Vision V24 starts at $99,995 for the standard battery pack version, while the V30 starts at a higher price of $139,995. As previously mentioned, both electric pontoon boats are available to order today.
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