Volkswagen (VOW3.DE, VWAGY) is committing to invest up to $5 billion into EV maker Rivian (RIVN) in a joint venture to build out software for both auto...
) in a joint venture to build out software for both auto makers' electric vehicles. Rivian shares are up nearly 40% over the past couple trading days on this news.to talk about why this is"great news" for Rivian as this injection will allow Rivian to"fight another day" Despite this recent tailwind, Rivian 's stock is still down 27% year-to-date.
So Tom, we can clearly see the excitement play out on the street when you take a look at the pop that we're seeing and shares of Vivian.Yeah, the first reaction is obviously this is great for Caribbean, right? So there's a little bit of a potential out for VW here given that, do you think that that up to 5 billion is kind of a drop in the bucket or is it something substantial that to your point VW kind of needed.Uh I think they lost something like 5 billion this past year and they have 9 billion of liquidity.Um So they're getting 3 billion of a cash infusion from VW.
Uh So, yeah, I think it could work because it's so narrowly defined I want to end by asking you, does either company here stand to be better fit as a competitor to Tesla off the heels of this deal?Uh I, I think what this basically does is it gives a cash infusion to Rivian so we can fight another day for Volkswagen.
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