Volkswagen invests 5 billion dollars in Rivian

The concentration of skills is accelerating in the electric vehicle market with the gigantic investment from Volkswagen in Rivian.

One against all… and especially all against one! Namely Tesla. The war of electric cars will not be won on a technical level, but on software. To exaggerate, all car manufacturers source from the same suppliers on the shelf: batteries, electric motors, inverters, etc. The success or failure of an electric car lies in energy management and artificial intelligence to optimize performance metrics such as range, charging, planners, regeneration, etc.

On the topic of software, only the big players, with very large human and financial resources, will survive. The concentration of skills is set to accelerate, and we are witnessing one of the first and most impressive examples: the creation of a joint venture between Volkswagen (which is lagging behind in software) and Rivian.

Rivian is one of the most publicized adversaries of Tesla in the United States, with founders who are former Tesla employees, tired of Elon Musk‘s autocratic methods. Musk’s disdain for Rivian serves as a perfect marketing engine for this young manufacturer, whose electric pickups are known to be much more sophisticated and refined than the highly publicized Tesla Cybertruck.

Creation of a super software company

Like Renault, which has created an entire division dedicated to the digital and IT aspects of its electric vehicles (Ampere), Volkswagen and Rivian will unite with, in the wedding basket, an initial check of one billion dollars paid by the German group, which promises to gradually increase to 5 billion dollars by 2026!

However, the question remains about the relevance after the costly investment in Bugatti as a gift… from the Croatian electric supercar manufacturer, Rimac. This semi-acquisition has not borne fruit as the gap between the needs of everyday electric vehicles is too great. Hopefully, Volkswagen’s decision with Rivian will be more inspired…

For Rivian, facing financial issues related to the recent launch of its operations, this entry of Volkswagen’s capital is an incredible opportunity, both in terms of credibility and development capacity. Financial markets have not been mistaken: the stock surged by 40% within a few hours.

We now await the reaction from Tesla and its CEO. Grab the popcorn.

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