The stock price of the electric car manufacturer rose sharply, up more than 31%. Prior to this, the company and Volkswagen had jointly announced the establishment of a joint venture to share electric vehicle architecture and software. Volkswagen will invest up to $5 billion in Rivian to jointly create electrification architecture and software technology. In response, Wall Street analysts have generally expressed optimism.$Rivian Automotive (RIVN.US)$The company held an investor event on Thursday and reiterated its guidance to produce 57,000 electric vehicles by 2024. Specifically, for the second quarter, the company expects production of 9,100-9,300 vehicles and deliveries of 13,000-13,300 vehicles.
Looking ahead, Rivian said the launch of the second-generation model, coupled with the decline in commercial costs and the bullish commodity prices, is expected to reduce materials costs by about 20%. Rivian also said it expects positive gross margin in the fourth quarter and forecasts adjusted EBITDA to be positive in 2027. The company said its long-term financial goal is to achieve a GAAP gross margin of about 25% and a free cash flow profit margin of about 10%.
It's worth noting that just a few days ago, Rivian announced a partnership with Volkswagen. The two sides will form a joint venture to share electric vehicle architecture and software for their future electric vehicles. It is reported that Volkswagen will invest up to $5 billion in Rivian, with an initial investment of $1 billion that Volkswagen will immediately invest in Rivian upon regulatory approval. By 2026, Volkswagen will continue to invest $4 billion for their joint venture. According to the agreement, the two companies are expected to complement each other and reduce vehicle production costs through their joint venture. Rivian's technical platform is expected to become the basis for the joint venture's future SDV (software-defined vehicles) development, which will be used in both companies' vehicles. Both sides plan to launch vehicles based on the joint venture's platform after 2025. In the short term, the joint venture is expected to enable the Volkswagen Group to utilize Rivian's existing electrical architecture and software platform to accelerate its SDV plan. It is reported that the two sides will continue to operate their respective automotive businesses independently.
According to the agreement, the two companies are expected to complement each other and reduce vehicle production costs through their joint venture. Rivian's technical platform is expected to become the basis for the joint venture's future SDV (software-defined vehicles) development, which will be used in both companies' vehicles. Both sides plan to launch vehicles based on the joint venture's platform after 2025. In the short term, the joint venture is expected to enable the Volkswagen Group to utilize Rivian's existing electrical architecture and software platform to accelerate its SDV plan. It is reported that the two sides will continue to operate their respective automotive businesses independently.
Editor/Lambor