Latest news with #Rivian
Yahoo
7 hours ago
- Automotive
- Yahoo
Germany's Volkswagen to increase stake in US electric carmaker Rivian
German car giant Volkswagen is set to increase its stake in electric vehicle maker Rivian with a planned second payment of $1 billion due this Monday, after the US-based company recently achieved key financial targets in early May. The payment will increase Volkswagen's stake in the company, which stands at 8.6% after an initial $1 billion investment last year. The cash injections are part of a broader cooperation agreement under which Volkswagen has pledged up to $5.8 billion to Rivian. This strategic investment gives Volkswagen access to Rivian's advanced electric vehicle (EV) architecture - technology the German carmaker hopes will help resolve persistent software development challenges that have delayed its own EV launches in the past. Rivian, founded in 2009, has faced financial difficulties in recent years but has now reported gross profits for two quarters in a row. This allowed Volkswagen to release the latest $1 billion payment. However, Rivian still recorded a net loss of $541 million in the last quarter, though this was much lower than the $1.445 billion loss previously reported. Future payments from Volkswagen will depend on the achievement of additional technological milestones, with the next $1 billion trance scheduled for mid-2026 and a final $500 million expected in 2027 when Volkswagen plans to launch its first vehicle featuring Rivian's technology. Of Volkswagen's total $5.8 billion commitment, $3.5 billion is earmarked for acquiring Rivian shares, which could eventually make Volkswagen the company's largest shareholder, surpassing current majority stakeholder Amazon. The remaining $2.3 billion will be invested in the joint venture Rivian Volkswagen Technologies, launched in late 2024. This venture will focus on developing a new electronic architecture and software platform for electric vehicles, which will be shared by both partners. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Al Etihad
8 hours ago
- Automotive
- Al Etihad
Germany's Volkswagen to increase stake in US electric carmaker Rivian
WOLFSBURG, GERMANY (dpa) German car giant Volkswagen is set to increase its stake in electric vehicle maker Rivian with a planned second payment of $1 billion due this Monday, after the US-based company recently achieved key financial targets in early May. The payment will increase Volkswagen's stake in the company, which stands at 8.6% after an initial $1 billion investment last year. The cash injections are part of a broader cooperation agreement under which Volkswagen has pledged up to $5.8 billion to Rivian. This strategic investment gives Volkswagen access to Rivian's advanced electric vehicle (EV) architecture - technology the German carmaker hopes will help resolve persistent software development challenges that have delayed its own EV launches in the past. Rivian, founded in 2009, has faced financial difficulties in recent years but has now reported gross profits for two quarters in a row. This allowed Volkswagen to release the latest $1 billion payment. However, Rivian still recorded a net loss of $541 million in the last quarter, though this was much lower than the $1.445 billion loss previously reported. Future payments from Volkswagen will depend on the achievement of additional technological milestones, with the next $1 billion trance scheduled for mid-2026 and a final $500 million expected in 2027 when Volkswagen plans to launch its first vehicle featuring Rivian's technology. Of Volkswagen's total $5.8 billion commitment, $3.5 billion is earmarked for acquiring Rivian shares, which could eventually make Volkswagen the company's largest shareholder, surpassing current majority stakeholder Amazon. The remaining $2.3 billion will be invested in the joint venture Rivian Volkswagen Technologies, launched in late 2024. This venture will focus on developing a new electronic architecture and software platform for electric vehicles, which will be shared by both partners.
Auto Blog
2 days ago
- Automotive
- Auto Blog
Tesla Sales Drop in Europe for Fifth Straight Month
Another tough month for Tesla Tesla's grip on the European electric vehicle market is slipping fast. The company's sales have dropped for the fifth consecutive month, and there's no clear sign of recovery. According to new data from the European Automobile Manufacturers' Association (ACEA), Tesla's registrations in the EU, UK, and EFTA countries plummeted nearly 28% in May compared to the same month last year. That's just the latest blow in what's become a sustained slide. 0:00 / 0:09 Rivian R1T delivers on this EV feature that Tesla forgot Watch More So far in 2025, Tesla has sold about 75,196 vehicles across these markets — a 37.1% year-over-year drop. Market share is shrinking just as the electric vehicle segment continues to grow across Europe, suggesting that Tesla isn't simply suffering from a slowing market, but falling behind in an increasingly competitive one. The numbers tell a grim story Tesla's European sales fell sharply right out of the gate in 2025. In January, the company sold just 9,945 vehicles — a 45.2% year-over-year decline. February followed with a 40.1% drop. March fared slightly better with a 28.2% dip, but April was brutal, with demand nearly halving. May's 27.9% decline sealed a five-month losing streak. Tesla Model Y Juniper — Source: Tesla These losses reduced Tesla's market share in the region from 2.1% in early 2024 to just 1.3% in 2025. While the company is shrinking, the EV market around it is growing. All-electric vehicles accounted for 17.1% of the overall market through May, up from 13.1% during the same period last year. Why Tesla is falling behind There's no single cause behind Tesla's slump, but several factors are at play. First, the competition has intensified, particularly from Chinese automakers offering lower-cost EVs that appeal to price-sensitive European buyers. Brands like BYD and MG are rolling out models that often undercut Tesla on price while offering comparable range and features. Autoblog Newsletter Autoblog brings you car news; expert reviews and exciting pictures and video. Research and compare vehicles, too. Sign up or sign in with Google Facebook Microsoft Apple By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. BYD Seal — Source: BYD Second, Tesla's own product lineup is aging. The Model S is over a decade old. The Model 3 and Model Y, while recently refreshed, are no longer the standouts they once were. Other automakers have caught up, both in terms of technology and overall appeal. Third, CEO Elon Musk's increasingly political and polarizing public persona may be tarnishing Tesla's brand image in parts of Europe, although quantifying that impact is challenging. Still, public perception matters, and Musk's antics may be wearing thin with European consumers. A comeback won't be easy Tesla Model X and Model S — Source: Tesla Tesla's best hope for reversing course in Europe might be the long-rumored low-cost model aimed at expanding its reach. However, confusion reigns about whether such a vehicle will even be coming. Reuters reported in 2024 that the affordable Tesla had been shelved — a claim Musk denied, calling the report a lie. Final thoughts In the meantime, rivals are flooding the market with options, and European regulations are tightening. With the EU's planned 2035 ban on new combustion-engine cars looming, every automaker is doubling down on EVs. That could squeeze Tesla further unless it finds a way to compete on both innovation and price. For now, the company's dominance in Europe looks increasingly like a thing of the past. About the Author Elijah Nicholson-Messmer View Profile
Miami Herald
2 days ago
- Automotive
- Miami Herald
EV company makes harsh decision amid new launch
With the rising number of electric vehicles on the road, owning a gasoline-powered car might eventually seem almost vintage. Electric vehicles have quickly become a significant part of the automobile industry, and many car companies are trying to enter the market by developing their own. Don't miss the move: Subscribe to TheStreet's free daily newsletter Halfway into 2025, well-known brands like Audi, Cadillac, Chevrolet, Dodge, and Kia have all launched new electric vehicles, and Tesla (TSLA) rolled out its highly anticipated robotaxi service to a select group of riders in Austin, Texas. Related: Tesla unveils an unusual innovation to win back customers The electric vehicle industry continues to grow, with global sales exceeding the expected $17 million in 2024, accounting for over 20% of total car sales. While global sales continue to increase, financial challenges can lead even the most profitable companies to make some harsh decisions for the sake of the business. Image Source:Founded in 2009 as Mainstream Motors, Rivian is an American electric vehicle manufacturer and technology company. However, like any other emerging business, making profits takes time, and the cost of producing electric vehicles is high. Although it boasted continued financial progress, the company didn't achieve profitability until the fourth quarter of fiscal 2024, largely due to cuts in production costs. Since then, Rivian (RIVN) has taken multiple steps to build on this success. Related: Struggling car company swiftly shuts down half its stores In the first quarter of fiscal 2025, Rivian achieved a gross profit of $206 million, marking its second consecutive positive quarter. The EV maker also received a $1 billion investment from Volkswagen Group as part of last year's $5.8 billion joint venture, Rivian and VW Group Technologies, LLC. However, despite delivering good results, production costs continue to increase, especially as the company navigates an uncertain economy and looming U.S. tariffs. This has led Rivian to make a harsh decision that may have come as a surprise to some. Rivian revealed it has laid off around 140 employees from its manufacturing division, representing around 1% of its total workforce. The downsizing comes when the company is only months away from launching its new R2 SUV in 2026, a new electric five-seat SUV that's a more compact and far more affordable alternative. More Retail News: This might deliver the economy news people want to hearBankrupt retail chain makes major comeback, reopens new storesJPMorgan Chase hikes up annual fee cost of popular credit card The layoffs began on June 25, and those affected were told that the company's decision to cut manufacturing salaried positions was made to improve its operational efficiency ahead of the R2 launch. However, this is not the first time Rivian has made serious cuts within its workforce. The company did two rounds of layoffs last year, cutting around 10% of its salaried employees in February and 1% in April. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
2 days ago
- Automotive
- Yahoo
Should You Buy Rivian Stock If It Falls Below $10 Per Share?
Rivian could lose access to valuable federal incentives. If shares fall, long-term investors should consider jumping in. 10 stocks we like better than Rivian Automotive › The next few months could be difficult for Rivian (NASDAQ: RIVN). Federal tax incentives for new electric vehicle (EV) purchases could soon be eliminated. Plus, there's another little-understood federal incentive program that could wipe out hundreds of millions in "free" profit for nearly every U.S. EV manufacturer. If all these incentives are eliminated, we could see Rivian stock fall below $10 per share. If this happens, should you jump on the chance to buy? Absolutely, but there are a few things to keep in mind if you do. Looking to buy an electric vehicle yourself? You might want to act fast. That's because President Trump's new bill proposes eliminating the federal tax incentives for new and used EV purchases. Right now, most new EVs qualify for a $7,500 tax credit upon purchase. Used vehicles can qualify for a tax credit of up to $4,000. Though there are some price and income limitations, these tax incentives have undoubtedly made EVs cheaper to purchase, adding demand to a vehicle category that is otherwise still more expensive to buy than traditional internal combustion vehicles. Rivian won't take a huge immediate hit from the elimination of these incentives. That's because most of its vehicles no longer qualify, partially due to price limitations, but also because its batteries don't include enough material sourced from either the U.S. or its listed trading partners -- a key requirement for tax credit qualification. But the company's new mass-market vehicles set to launch in 2026 may yet qualify. If those lower-priced vehicles do theoretically qualify, but tax incentives are eliminated before they reach production, expect demand to be lower than it otherwise would be. There's another tax incentive, however, that could be even more destructive for Rivian, should it be eliminated. Most American EV producers generate "free" income by earning automotive regulatory credits under a variety of state and federal programs. EV makers earn these credits and then sell them to automakers that don't produce enough low- or zero-emissions vehicles. In the final quarter of 2024, Rivian sold $300 million of these credits, essentially producing $300 million in pure profit. That undoubtedly helped the company achieve positive gross margins that quarter for the first time in company history. While the company likely earns most of these credits from state programs like California's, the elimination of federal programs could have a disproportionate impact on both revenues and profits. What if these programs are eliminated and Rivian stock falls in response? The stock could be a buy under $10 per share, but there are a few things to know before jumping in. Right now, Rivian stock trades at just 2.9 times trailing sales. If shares fell below $10, they would trade at roughly 2 times sales. The last time shares were priced that cheaply was in June 2024. In the 12 months that followed, Rivian stock rose in value by more than 35%. Back then, however, federal EV incentives weren't as at risk as they are today. So what would the ultimate impact be on Rivian's financials should these programs be eliminated? As mentioned, the company earned around $300 million by selling automotive credits in the last quarter of 2024. In the first quarter of 2025, regulatory credit sales totaled around $157 million -- more than half of the expected sales total for 2025. So moving forward, at least according to previous estimates, we should see less income from these sales in future quarters. How much of these credit sales are from federal sources? It's tough to know, as the company doesn't break things down any further. Eliminating tax incentives for EV buyers will have an equally murky effect. Rivian's new affordable models -- to be launched in 2026 and 2027 -- will help the company reach price-conscious buyers. But when some European countries ended incentives, sales for EVs plummeted despite the availability of more affordable models in those markets. In all, Rivian stock will become a more complicated story, should these programs be eliminated. Shares will look cheap on a trailing basis if they fall to $10 or below. But expect the company's sales growth trajectory to be pushed out by a year or two, with capital perhaps more difficult or more expensive to raise. Rivian stock is likely still a buy, but only long-term investors willing to wait many years should jump in. Before you buy stock in Rivian Automotive, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Rivian Automotive wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $687,731!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $945,846!* Now, it's worth noting Stock Advisor's total average return is 818% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Should You Buy Rivian Stock If It Falls Below $10 Per Share? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
