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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Rivian and Uber have just announced a massive partnership to put driverless robotaxis on the road. In a move that sent shockwaves through the EV and tech sectors, Uber has committed to investing up to $1.25 billion in Rivian to deploy a fleet of up to 50,000 fully autonomous R2 robotaxis.
The deal, announced on Thursday, marks a major step toward making driverless rides a mainstream reality. The collaboration aims to put thousands of unsupervised R2 vehicles on the road across 25 cities in the U.S., Canada, and Europe by the end of 2031.
A Billion-Dollar Bet on Autonomy
The scale of this agreement is staggering. Uber and its fleet partners will initially purchase 10,000 autonomous R2 units, with an option to buy 40,000 more starting in 2030. These vehicles will be available exclusively on the Uber platform. Commercial deployments are slated to kick off in San Francisco and Miami in 2028 before expanding globally.
Rivian Wave
RJ Scaringe, Founder and CEO of Rivian, is optimistic about the tech stack powering this fleet. “The scale of Rivian's growing data flywheel coupled with RAP1, our state of the art in-house inference platform, and our multi-modal perception platform make us incredibly excited for the rapid advancement of Rivian autonomy over the next couple of years,” Scaringe said. Uber CEO Dara Khosrowshahi added that Rivian's vertical integration gives Uber "conviction to set these ambitious but achievable targets."
If you're looking to buy one yourself, here is how the full R2 lineup is rolling out:
R2 Performance ($57,990): Arriving late Spring 2026. This dual-motor AWD flagship boasts 656 hp and a 3.6-second 0–60 mph time. It also features a "Drop Glass" rear window and a semi-active suspension.
R2 Premium ($53,990): Expected in late 2026. This trim offers 450 hp and a 4.6-second 0-60 mph time, though it skips the semi-active suspension.
R2 Standard Long Range ($48,490): The range leader with an estimated 345 miles of range, coming in early 2027.
R2 Standard ($45,000): We don’t know much about the most affordable base model other than that it is currently expected in late 2027.
If you’re still trying to decide which Rivian is right for you, check out our R2 vs. R1S buyer’s guide.
The Jump to Level 4 Autonomy
The R2 units meant for Uber will be a bit different from the early consumer models. While initial consumer R2s will use Rivian’s Gen 2 hardware, the company will pivot to Gen 3 hardware in late 2026. This next-gen suite includes LiDAR sensors and dual RAP1 chips capable of 1600 TOPS of AI compute.
This hardware is what Rivian hopes will enable true Level 4 autonomy — meaning the car can handle all driving tasks in specific conditions without any human intervention. By combining real-world data from its consumer fleet with these high-end sensors, Rivian is betting it can catch up to and eventually surpass current leaders in the space.
The partnership with Uber provides Rivian with both the capital and the platform to prove its tech at a massive scale. As we move closer to 2028, seeing an empty R2 pull up for your Uber ride might soon be the new normal.
Rivian is finally in the home stretch for its long-awaited R2 midsize SUV. After years of development and a public unveiling last week, the company is shifting its focus to the assembly line. The launch is a make-or-break moment for the automaker, which is banking on the R2 platform to carry it toward profitability.
During an interview with Out of Spec Reviews during SXSW 2026, Rivian’s Chief Software Officer Wassym Bensaid provided the most specific details yet regarding when the first units will actually hit the road.
The R2 Delivery Sequence
According to Bensaid, the rollout will follow a strict sequence to ensure the software and hardware are fully validated. The first vehicles off the line will be handed over to Rivian employees over the next few weeks.
“We’re in the final — obviously — stretch of the R2 validation, where we had the manufacturing validation builds, and then we’re getting into serious production really soon,” Bensaid said. He explained that employees “will have the cars for a few months” to help the team “accumulate a ton of miles but then also have that return of experience on the overall software.”
Once internal testing is complete, the first “lucky customers” will receive their vehicles by the end of spring, which likely points to a late May or June delivery window.
R2 Performance ($57,990): Arriving late Spring 2026, with the first deliveries also including an exclusive Launch Package. This dual-motor AWD flagship features 656 hp, a 3.6-second 0–60 mph time with a semi-active suspension, and a "Drop Glass" rear window that rolls down into the liftgate.
R2 Premium ($53,990): Expected in late 2026, this variant will skip the semi-active suspension and top out at 450 hp with a 0-60 mph time of 4.6 seconds.
R2 Standard Long Range ($48,490): The range leader of the family at a Rivian-estimated 345 miles, slated for early 2027.
R2 Standard ($45,000): The most anticipated base model is currently expected in late 2027.
A New Software Experience
Bensaid also spent significant time discussing the R2's overhauled user experience. He described a ground-up redesign of the operating system that focuses on multi-panel layering and haptic feedback. He mentioned being particularly excited about the new "Haptic Halo" scroll wheels on the steering wheel, calling them “one of the things that I’m really, really excited about”.
Rivian Wave
The software chief noted that he gets to drive the R2 every weekend and finds it to be the "perfect size" for his family. “My daughter loves it. She sits in the second row. It’s actually more spacious than the R1. She loves the screen. She’s in love with the screen,” he said. If you are trying to decide between the two, you can check out our R2 vs. R1S buyer’s guide for a deeper look at the differences.
With Rivian offering public rides in pre-production R2 units at SXSW over the past week, the finish line is finally in sight. If the company can navigate the transition from employee testing to public deliveries smoothly, the R2 could very well become the definitive electric SUV for the adventurous mass market.
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