Earlier, some media reported that Rivian was in early talks with Volkswagen, hoping to expand the cooperation beyond software to include hardware and manufacturing business. However, Rivian denied on Tuesday that there is currently no plan to produce cars with Volkswagen.
Last week, the American electric auto manufacturers who were once known as the 'Tesla killer'$Rivian Automotive (RIVN.US)$have entered into a new partnership with the German auto giant, Volkswagen, and have received a $5 billion investment.
In a joint statement, the two companies stated that the new joint venture will be controlled and owned equally by both General Motors and Rivian. After the news was announced on Tuesday, Rivian's stock price surged about 50% in after-hours trading and was up nearly 47% in overnight trading. The stock has fallen 49% so far this year.
Later, there were reports that Rivian was in early talks with Volkswagen, hoping to expand the cooperation beyond software to hardware and production business, or produce Rivian's smaller and cheaper R2 electric SUV at Volkswagen's factory in South Carolina.
On Tuesday local time, Rivian denied having any plans to produce autos with Volkswagen. The company's stock price fell 1.5% during after-hours trading, and fell 0.13% in overnight trading at the time of publication; the decline this year has reached about 30%.
'There are no plans to produce cars with the Volkswagen Group,' a Rivian spokesman said in an email to the media. Volkswagen declined to comment on the media reports, saying only that its focus was on joint ventures.
The Rivian spokesman said the company had not changed its plan to produce the R2 at its Normal, Illinois factory and would also begin production at its planned factory in Georgia.
Last week, Rivian CEO RJ Scaringe said Volkswagen's support would help move forward with plans to build a new plant in Georgia. Under the contract, Rivian will invest $5 billion in the Georgia project by 2030.
Volkswagen's investment undoubtedly provides Rivian with a 'financial lifeline'. The company has been struggling to increase the production and delivery of its electric pickup trucks and SUVs. In March of this year, Rivian suspended plans to build a new factory in Georgia to save cash and cope with the difficult situation of severe losses. The loss per vehicle in the last quarter was about $39,000.
For Volkswagen, the joint venture provides the electric car technology that traditional car manufacturers have been struggling to develop. The German auto giant has been working for years to launch a plug-in car with the efficiency and functionality of a Tesla, and now it can use Rivian's software and electric vehicle architecture.
Volkswagen said it plans to start building its Scout brand electric SUV and pickup trucks at its South Carolina factory in 2026. A Scout Motors spokesman said, 'We have not had any discussions about producing Rivian cars.'
Edited by Jeffrey