Rivian and Volkswagen to Create Joint Venture as VW Invests $5 Billion in Rivian -- Stock Soars

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According to recent Bloomberg and Businesswire publications, Volkswagen will be investing $5 billion USD to form a joint venture with Rivian. Rivian stock has also rallied an astounding 50% in the hours since the announcement.

$5 Billion Stake

Of the $5 billion being invested, $1 billion will be invested immediately in Rivian, and the remaining $4 billion will be invested over time. That initial $1 billion will be invested in the company by the end of 2024, pending regulatory approval. The remaining $4 billion could be a fair while out, pending the formation of the joint venture in the fourth financial quarter of 2024.   

The new joint venture will be “equally controlled and owned”. This is at a critical juncture for Rivian, who has recently debuted their R2 and R3 platforms, as well as bringing a much-appreciated revamp for the R1 platform.

CEO of Volkswagen, Oliver Blume:

“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.”

Joint Venture

Part of the joint venture will be to help Rivian lower the cost per vehicle, while Rivian helps provide Volkswagen with its new Zonal control technology, which optimizes and shortens the circuit paths in a vehicle.

The Rivian platforms are also expected to serve as the foundation for future EV vehicles from Volkswagen. Rivian will be maintaining its intellectual property rights throughout the joint venture, which will provide an ongoing revenue stream for the company, as it settles into a new and faster production rhythm.

Rivian CEO, RJ Scaringe, said:

“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.”

Battery Venture Speculation

There is another opportunity for both companies, as Volkswagen moves to establish a 370-acre battery “giga factory” in Ontario, Canada. This could be an opportunity for Rivian and Volkswagen to continue their cooperation on battery technology, as Volkswagen intends to use the Rivian platforms for their vehicles.

Volkswagen has only recently broken ground at the site and expects the factory to produce about 90 GWh of batteries per year – or enough for roughly 1 million EVs a year. Volkswagen and the Ontario government expect that the factory should be fully functional by 2027. We could expect batteries from this Ontario factory to end up in Rivian vehicles in the future!

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Tesla’s Referral Program Launches in Europe

Not a Tesla App

Following its recent launch in the United States and Canada, Tesla has launched their referral program in several European countries as well.

The program is available in Germany, Norway, France, the Netherlands, the United Kingdom and possibly others. The program is almost the same as the one available today in North America, with rewards for each referral and a discount for those referred. The cap in Europe is also ten per year.

This program comes right on the heels of a 0% financing offer for the Model Y in Sweden and France. While referrals aren't currently available in Sweden, the 0% financing still is.

European Referrals

The European Referral program accounts for country and local currency, where applicable.

The referral reward program is comparable to the one available in North America. After exchange rates, there is only an approximately 10% difference between the available rewards in the US and EU.

Other Countries

We expect this program to start rolling out to other European countries over the next few days or weeks, as Tesla continues to expand its referral program.

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Tesla's Android App Lags Behind Apple's: The Missing Features

Maxim

Tesla has confirmed that they submit app updates for Android and iOS apps at the same time, but we often see the iOS app updates released first possibly due to a quicker app review process at Apple.

However, we often see features implemented on the Apple version weeks or months before they’re implemented on Android. Today, the Android app is missing several key features, and the gap is starting to become a bit glaring.

Delayed App Updates

The Android app just received update 4.36.6 last night, while the Apple update was available as of September 1st.

That might not seem like a big deal, but in order to use the updated Actually Smart Summon, you’ll need app version 4.36.6, so any Andriod users that received update 2024.27.20 with the new Summon, couldn’t use it until yesterday.

We’re sure Tesla is on it, but it’s disappointing to see that key feature updates take days or a week longer to receive on Android. Apple and Google both offer the ability to set a release date for an app update, so Tesla could coordinate releasing the apps at the same time.

Ultra Wideband Support

Unfortunately, there’s no Ultra Wide Band (UWB) support on Android yet, which is an interesting omission since it’s such a great feature. Most Android phones, flagships, and cheaper phones alike, all support UWB.

Without UWB support Android phones can’t use Tesla’s newest phone key, which is only available for devices that support UWB. The new phone key improves reliability for unlocking the vehicle and setting the correct Tesla driver profile. To support the new phone key, you need a compatible phone (iPhone 11 or newer) and a newer vehicle that supports ultra wideband.

Hands-Free Trunk

Tesla’s new hands-free trunk feature, which allows you to automatically open your trunk by simply standing behind it for a couple of seconds, also isn’t available on Android devices. Tesla’s Hands-Free Trunk requires UWB support too, and Tesla originally mentioned it was coming to Android in May 2024.

For now, those are the features we know of that don’t work on Android today, and we’re hoping that Tesla brings both UWB support, as well as simultaneous app updates to the Google Play and Apple App Store by leveraging each store’s publish date feature.

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