Rivian and Volkswagen released an update to their Joint Venture, which was announced in June of this year. In the original announcement, Volkswagen promised to invest $5 billion in Rivian—$1 billion immediately and another $4 billion over time—for an equally controlled and owned joint venture.
“The partnership with Rivian is the next logical step in strengthening our global competitive and technological position.”
-- Oliver Blume, CEO of Volkswagen
The goals were to help Rivian reduce its cost per vehicle, while also helping Volkswagen with software and zonal control technology. This collaboration presents an incredible opportunity for Rivian, positioning its technology and software as the foundation for future EVs developed through the joint venture. Crucially, Rivian retains its intellectual property rights, opening up a substantial new revenue stream for the company.
JV Update
The JV has been updated with a total deal size of up to $5.8 billion now—which is an addition of another $800 million to the original proposal. Rivian and Volkswagen will send engineers to join the JV, which will be co-headed by Rivian’s Wassym Bensaid and Volkswagen’s Carsten Helbing. Both will take on the title of co-CEO at the JV.
“We’re thrilled to see our technology being integrated in vehicles outside Rivian – this is an important enabler to help accelerate EV adoption.”
-- RJ Scaringe, CEO of Rivian
The primary purpose of the JV is to start working on the electric architecture—that Zonal control—and the software for what Volkswagen calls “next-generation Software Defined Vehicles,” or SDVs. The JV will officially start on November 13th, 2024, with both companies beginning contributions to the JV on that date.
The best part? The JV focuses on more than just one market segment - it includes subcompact cars. That means a mass-market vehicle that’ll be built upon Rivian’s proven tech and software will one day be available - pushed forward by Volkswagen’s mass-market scale.
The JV will be based in Palo Alto, California, as well as some other sites in North America and Europe - for a total of up to four sites. It’ll be a chance for engineers from both companies to get together and figure out how to best leverage what both companies have to offer and build an appealing set of products.
JV Focuses
With the primary focus being on using Rivian’s pre-existing architecture and software stack, the R2 platform is a clear starting point for the JV - one of its key purposes will be to bootstrap the launch of the R2 in early 2026, and then go on to support the R3, and further Volkswagen vehicles sometime in 2027 and 2028.
Scaling Rivian’s technology will be challenging. While Rivian’s tech is modular, flexible, and highly capable, these advanced features come with a high price tag. To make vehicles that are both high-performing and affordable, the joint venture will need to focus on reducing costs without compromising on capability.
Interestingly, the JV also mentions automated driving functions - so we can probably expect Rivian’s Autonomy Platform to be present on these new vehicles as well - alongside a specific focus on OTA updates.
Rivian and Volkswagen have supposedly already built a driveable demonstrator vehicle, a Volkswagen car built to run on Rivian’s hardware and software, which sounds a lot like Scout…
We’re excited to see where this JV goes and how it helps shape Rivian, Rivian’s software platform, and the future of EVs.
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The moment Rivian fans have been waiting for is almost here. This Thursday, March 12, the California-based automaker will officially take the stage at SXSW 2026 in Austin, Texas, to unveil the production version of its highly anticipated R2 midsize SUV.
The R2 represents a make-or-break moment for the brand. Rivian is banking on this vehicle and its new autonomy stack to lead it to profitability by the end of 2026. Built on an entirely new, lighter platform, the R2 is designed to compete directly with the Tesla Model Y.
What to Expect
Based on insights from Rivian watcher @Hilbe, we have a solid idea of what to expect from the reveal. The highlight will be the automaker sharing the full specifications for the R2 and what variants it will be available in, along with the configurator launch, where we should see options for paint, wheels, and interior finishes.
Launch Configurations: The first trim to roll off the line is expected to be the dual-motor, all-wheel drive Launch Edition.
Pricing: While the R2 is rumored to start around $45,000 for the single-motor base model, the Launch Edition that’s supposed to kick off deliveries will likely carry a higher price tag.
Performance & Upgrades: Expect details on a performance upgrade for the 656-horsepower dual-motor setup, which hits 0-60 mph in 3.5 seconds. There should also be an "All-Terrain" package and premium audio options.
Utility Features: Look for more info on the rear window that rolls into the tailgate and front seats that fold flat for car camping.
Tesla Compatibility: The R2 will feature a native NACS port, granting it access to Tesla Superchargers out of the box.
Rivian Wave
While the hype is high, there are some things you shouldn't count on seeing this Thursday. We aren't expecting immediate R2 deliveries, as volume production in Illinois isn't slated until mid-2026.
Additionally, don't expect current reservations to convert to firm orders just yet, nor should you expect R2 accessories to hit Rivian’s Gear Shop immediately. While the focus is strictly on the R2, Rivian could always surprise us with new glimpses of the R3 or R3X, though new models like an "R2T" or "R1X" remain unlikely for this specific event.
When is the Event
The R2 unveiling is scheduled for Thursday, March 12, 2026. This date is strategically chosen to pre-empt the start of Rivian's "Electric Roadhouse" showcase at SXSW, where the company will later offer public R2 rides to attendees.
The event is expected to start at 9:30 a.m. PT, which is the following times around the world:
9:30 a.m. Pacific Time
12:30 p.m. Eastern Time
4:30 p.m. UTC
4:30 p.m. — London, England
5:30 p.m. — Berlin, Germany
3:30 a.m. (next day) — Sydney, Australia
How to Watch
Rivian is expected to livestream the event directly from its SXSW hub in Austin. The company typically shares a link on its social media channels and website closer to the start time. We will add that link here as soon as it becomes available, so stay tuned for that and our full coverage of the R2 unveiling.
This event marks the beginning of Rivian's transition from a niche, high-end truck maker to a mass-market player. If the R2 lives up to the specs we've seen so far, the electric SUV market is about to get a lot more interesting.
Rivian has laid out a highly aggressive roadmap for the next chapter of its business. Presenting at the Morgan Stanley Technology, Media & Telecom Conference on Thursday, Rivian’s executives detailed their strategic vision moving forward, focusing on the R2 platform, autonomous driving, and the financial runway provided by the Volkswagen Joint Venture.
While Rivian acknowledged the ongoing challenges of managing production costs and scaling internationally, the tone of the presentation was overwhelmingly focused on leveraging software and technology to reach profitability by the end of 2026.
R2 for Next-Gen
The R2 platform is the linchpin of Rivian's growth strategy. Designed to tackle a much larger, more affordable addressable market than the flagship R1 lineup, executives noted that capturing even a fraction of the market share they achieved with the R1 in this new segment would be a "home run beyond our wildest dreams.”
However, the R2 is more than just a smaller vehicle entering the lineup. Rivian described the new platform as a vessel for its advanced technology. It represents the company's next-generation electrical architecture and software stack, which is critical for the scale and profitability they’re looking for. This mid-size platform will also be the focus of Rivian's new plant in Georgia, which is intended to facilitate future exports to the European market.
Building Its Own Hardware
Perhaps the most significant change discussed during the conference was Rivian's dedication to developing its autonomous driving platform entirely in-house. Rather than relying on external suppliers or off-the-shelf software as it has done so far, Rivian is aggressively building its own autonomy stack to differentiate itself from other automakers.
Unlike Tesla, Rivian’s vehicles will be boasting a robust sensor suite, with Gen 2 vehicles equipped with 11 cameras, five radars, and upcoming LiDAR hardware in later revisions. By pulling driving data from these highly equipped customer vehicles, Rivian believes it has created a fleet capable of effectively gathering ground truth data in the real world.
Following the launch of hands-free RAP+ early last year, Rivian confirmed plans to introduce a highly advanced point-to-point autonomous system later this year.
Licensing Autonomy
This massive investment in electrical architecture and autonomy is not just for Rivian's own vehicles. Rivian is instead looking to be viewed as a modern technology provider for the automotive industry.
This strategy was validated by the $5.8 billion joint venture with the Volkswagen Group. Rivian sees a major opportunity to potentially license its autonomous hardware and software capabilities, in addition to its zonal electrical architecture, to other automakers that are struggling to keep pace with the transition to software-defined vehicles.
Financial Runway
To fund these ambitious technological leaps, Rivian appears to be on a stable financial footing. The company ended 2025 with $6.1 billion in cash reserves and anticipates an additional $2 billion infusion from Volkswagen during 2026. With the upcoming R2 launch, expanding tech partnerships, and a strict focus on cost reductions, Rivian executives reaffirmed their goal to achieve positive gross profit margins by the end of 2026.
This contrasts with recent analyst expectations from Bank of America, which has noted that Rivian is running on a tight financial leash to meet all its capital expenditures around the R2 and autonomy.
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