Rivian Secures $5 Billion Volkswagen Deal Amid Push for Profitability

The partnership aims to bolster Rivian's financial stability and accelerate production of next-generation EVs.

Volkswagen's investment includes $1 billion upfront and additional funds for a joint venture focused on EV technology.
Rivian plans to cut material costs by 20% this year, with further reductions expected as new models roll out.
Production of the cost-efficient R2 model is set to begin in early 2026 at Rivian's Illinois plant.
Rivian reaffirms its target to achieve positive gross profit by Q4 2024 and maintains its 2024 production goal of 57,000 vehicles.
Analysts view the Volkswagen deal as a crucial vote of confidence in Rivian's long-term prospects.