Volkswagen VWAGY will leverage its partnership with Rivian Automotive Inc. RIVN to energy its upcoming flagship electrical automobile, codenamed “Undertaking Trinity.”
What Occurred: This collaboration is a part of a $5.8 billion three way partnership aimed toward integrating Rivian’s superior structure into Volkswagen’s future fashions.
In accordance to InsideEVs, Undertaking Trinity, initially delayed, is about to function Degree 4 autonomous driving capabilities. The delay permits Volkswagen to give attention to launching an electrified model of the Golf, described as a extra “iconic product.”
The Golf EV is anticipated to debut in 2029, with Trinity following at a later date.
Volkswagen CEO Thomas Schafer confirmed the partnership with Rivian throughout a media roundtable, emphasizing the significance of the brand new software-defined automobile structure.
“We selected do the software-defined automobile. It will occur with Rivian, the three way partnership, the place we put the brand new electrical electronics structure collectively,” stated Schafer.
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Whereas Undertaking Trinity just isn’t meant as a mass-market automobile, it stays an important a part of Volkswagen’s technique to rejuvenate its model.
The brand new structure will first seem in Porsche and Audi fashions by 2027, ultimately extending throughout the Volkswagen household, together with luxurious SUVs and compact vehicles.
Why It Issues: The partnership between Volkswagen and Rivian marks a strategic transfer for each corporations.
The three way partnership, formally launched earlier this month, entails a $5.8 billion funding from Volkswagen, up from the beforehand introduced $5 billion. This improve in funding underscores the significance of the collaboration for Rivian, offering a much-needed enhance to its monetary stability and development potential.
The three way partnership goals to advance electrical and digital structure expertise, specializing in digital management models, community infrastructure, and related software program. This partnership is anticipated to boost Rivian’s capital roadmap, aiding in future development and vertical integration of its software program and electrical programs, in line with analysts at Wedbush.
Nonetheless, the deal has not been with out controversy, reportedly inflicting discontent amongst staff at Volkswagen’s software program division, Cariad.
Value Motion: Rivian inventory closed at $12.22 on Wednesday, surging 5.8%. In premarket buying and selling on Friday, the inventory was up 1.5%. Yr-to-date, the Rivian inventory has declined by 42%, in line with Benzinga Professional information.
Analysts are bullish on Rivian, with the consensus ranking being ‘Purchase’ on the EV big’s inventory. The best value goal is $28, whereas the bottom is $11. The consensus value goal is $16.17, which means a 32% upside.
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