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VW doesn’t get as much as you might think. Rivian’s technology is less profitable than VW’s. Okay, it works better but VW can’t become profitable using overly expensive technology. What VW really needs to survive is a low cost profitable small car that has a large TAM.
@@markplott4820True, only 2nd most seller of cars, many production sites all over the world. that are fairly competitive, worldwide market acceptance, worldwide regulators acceptance, they sit in VDA, UN/ECE commissions and i guess in every government of the world. What could Tesla want from VW, Nothing of course…
@@markplott4820 Sure, but I think Tesla would have been open to it, as it would align quite well with the corporate mission. Plus Elon and Diess were friends.
It’s precisely at times like these that investors need to be on guard against the next certainty. You don’t have to act on every forecast. I will also suggest investors to get yourselves a financial-advisor that can provide you with entry and exit points on the shares/ETF you focus on.
thats true VENTURING into the trading world without the help of a profesionals, trading and expecting profit is like turning water into wine you would need a miracle...
Speaking from Brunei, the local VW Dealer went bust last year and the manufacturer pulled out of most of S.E Asia to an alarming degree. Here in Brunei, a rich country, there are three-year-old VWs rotting in car ports, unusable, as Spare Parts cannot be accessed! VW's reputation is in the toilet here. Funny thing: the actual VW Dealership property/showroom/workshop...was bought by a Chinese EV company!
VW is considered unreliable hot garbage in the USA. It's only popular with people who are racist against Asian brands and can't afford a European luxury brand. So they buy a VW and claim they are better than others who buy Asian or American branded cars.
The same reason they still exist German governments illlegel backing otherwise they would have disappeared in the 70s, 80s and 90s like all European carmakers in countries that did break the EU rules
Thanks for the continuous updates! All we need is the right advice on how to invest in crypto and we will be set for life, made $28,000 profit last week regardless of how bad it gets on the economy.
Same here, I believe the Bitcoin ETFs approval will be a life changing opportunity for us, with my current portfolio of $108,000 from my investments with my personal financial advisor < Mrs Linda Raschke> I totally agree with you
Rivian were (are) in the "NEED MORE CASH... NOW!!" situation. . VW probably figured "We can start paying 5 bn (over a period) for their IP today, or wait "a few months" and enter a bidding war. . Rivian? "It's probably the best deal we're *certain* of getting"
The most indebted company in the world is CITIC (CTPCY) with a total debt of $343.604B, followed by Volkswagen (VWAPY) and Toyota Motor (TM). Last updated Jun 21, 2024.
VW came out way ahead on this one. They got Rivian shares for about $10.83 - a low end of range number. They get IP sharing that might help VW, although that is dubious considering VW's ability to develop EVs thus far. Even if Musk sent his entire engineering team to VW for a year, it is not likely their bureaucracy would be able to tolerate it. So, VW gets some low ball equity, and perhaps some IP alien to their thinking. Rivian gets what looks like a life preserver with a slow leak while far from shore, and oh yeah, they just revalued themselves downward.
The missing piece in the VW/ Rivian deal is Herbert Diess. If Diess was involved in some way, maybe as a liaison between the partners, then it may just work. Otherwise, not holding my breath.
"Equally controlled"...not. This deal saves the body but kills whatever soul Rivian had left. Sort of like when Ford bought Jaguar. The brand quickly became irrelevant.
VW investing in Rivian, why does that sound familiar. GM investing in Nikola? GM investing in Lordstown? Ford investing in Rivian? Audi in Lucid? No I'm sure that this is not the same desperate attempt ending in abject failure, right? 😂
Had Mercedes held on to its Tesla shares way back when, they'd be worth more than... Mercedes itself. Don't think that's gunna happen this time for VW, but it would be hilarious.
The only path to survival for legacy ICE auto makers is to joint venture with Tesla, or Chinese EV makers. In exchange for 51% shares, the legacy automakers put up most of the capital and in return get access to Tesla's manufacturing & technical expertise, software and in-house parts, components & assemblies. In other words a Ford or VW EV has "Tesla Inside".
So if I’m understanding him correctly, Rivian’s “cool factor” will take a hit from its partnership with VW, however, Tesla was able to work with Toyota and Ford with no hit to its brand image? This is an interesting take considering the fact that VW owns luxury car brands like Audi, Bugatti, and Lamborghini and nothing suggests those car companies lost their appeal after they were bought. Also, he apparently doesn’t recognize the potential advantage of having the German govt involved. Aside from the fact that this could give Rivian preferential access to the German market, it could also mean that it could get better access to a skilled workforce that has highly educated and has decades of auto manufacturing expertise. It isn’t difficult to imagine Germany giving Rivian preferential treatment in order to help VW, one of its national champions.
VW needs to let Rivian mass produce a new small Rivian sedan at VW facility around a 40/60% income to Rivian/VW and maybe sell that same car under a VW brand. Rivian can make a good vehicle for VW, and themselves, while getting VW funding and manufacturing, plus Rivian makes better vehicles than VW, so that's a win for VW. I saw many car companies merging a long time ago for EV creation, cause they'll need the resources, and facilities.
So do other investors, i.e. share holders also get access to Rivian tech????????????? I assume NO, so Is this legal to exclude smaller investors?????????????
Jesus 😮 When a cash infusion bumps a stock by 50%, that tells me most people thought the company was going under, and now there’s some hope they might live long enough to turn it around.
Well, I picked the challenge to put my finances in order. Then I invested in cryptocurrency, stocks, through the assistance of my discretionary fund manager
5:47 - (Agree with SMR on this) I detect a bit of resentment that One of those questionable 'methods' was avoiding the wasteful MSM advertising. MSM can't stand a company that refuses to use their advertising, but the MSM has planted the bad seeds of themselves - to ultimately make themselves irrelevant. The best MSM is NO MSM.
It’s obvious MSM is biased and often intentionally deceitful, but don’t let your opposition of the bigger guys deluded you into thinking independent media lacks the same issues. They are usually at least as bad, there’s just more of them. The root of the problem is that profit is tied to attention, not quality or truthfulness.
Back when doomsayers were harping on Tesla’s losses, and quoting huge losses per vehicle, it was critical to understand whether or not there was an actual negative margin on production or not. In Tesla’s case, each car had a positive margin, and increasing production volume resulted in decreased losses, and eventually very good profits. Is there any data on whether or not the margins on each Rivian vehicle produced are positive or negative? If they selling vehicles or more than it costs to make that vehicle, ramping up production is great. If the marginal cost to make a truck is $110,000 and they are selling if for $70,000, they have a huge problem to solve.
Make a profit on the one you have before building the next model. How long did VW make the Beetle before making other cars for the mass market? WWII and Porsche don't count.
so rivian gained 3 billion in debt in one year and 5 billuon is what to keep the lights on. its only giving them another year at life when you look at debt increases year over year for the past 4 years.
It is the way VW fiests on carrion...Just like Tesla has done with ToadOta and Space X is doing to T Mobsters which also feasted on Sprinted.... a real Business Banquet!!!
This is genius for both VW and Rivian. VW will be able to build a substantially better Scout. They also want you to sell the scout direct, not through dealers. VW will be able to all of this much easier and better with Rivian. Rivian will finally produce trucks it doesn’t have to sell at a loss. It’ll sell them to VW at a modest profit.
Seriously wish both Rivian and Lucid could thrive, never seemed likely enough for ME to consider investing tho. Need Elonesque ruthless cost cutting, probably both dragging (pun) ESG ball and chain too.
It's look like one side deal from Rivian. I'm still can't see how VW will profit from this (yes they'll get the tech but at $5B cost, not sure it's gonna turn profit anytime soon)
Rivian is not getting $5B. It's getting $1B as convertible note (VW got HUGE discount on the stock) and the other $4B goes into a Joint Venture (JV) which will benefit VW, not Rivian. Basically, Rivian engineers will now be working for VW who's software group Cariad is a MASSIVE fail, 5 years late, which will slow down Rivian. The only benefit Rivian gets is a lifeline which MIGHT (not guarenteed) help them launch the R2 lineup - but launching a new product line is SUPER expensive, products will have negative margin, and Rivian will need more funding to make the R2 lineup profitable. Also, don't forget the Mercedes and Ford JVs which went nowhere - so once VW gets the IP they wanted, they are likely to part ways, launch Scout with Rivian IP and at that point Rivian will be in even WORSE shape then it is today. Rivian might found out this "investment" was a VW Trojan Horse - allowing VW to launch the Scout brand and BRUTALLY compete with Rivian.
BP and other EV independent companies will grow the charging network. Where is VW getting the money to help Rivian? They are on life support themselves.
BP and other "EV independent" companies *will try to profit from the charging network* . Their problem is they think the way to do that is to double the price of the cheapest (most ubiquitous?) charging available. That makes me question their methods and motives.
The game is called investing. I own rivian shares but I also trade tsla options. To me it’s not about rivian being the next tsla, it’s about what price I bought it at and where the current price is currently at. Don’t be a fan boy just play the game.
This was a good move for VW, though Rivian & VW have not yet figured out how to make EVs profitably. RJ Scaringe is not going to be happy with the VW bureaucracy. I expect a similar M&A move to happen with Lucid and Stellantis or GM as companies get more and more desperate.
Why is Rivian burning cash? They did not embrace KISS Keep It Simple Stupid all the fancy cool factor gadgets was is their downfall each took time and resources to develop and creating supply chains for them and all those extra supply chains have to be timed with the vehicle production layers and layers of unnecessary complexity if they let third parties make all the cool "adventure" stuff they might have survived.
The current slow down in EV sales and in manufacturing efforts makes sense but not for the reasons most people think. Tesla is, at most, a year or two from solving autonomy. Once that is done, the automotive market will undergo a major shift from selling automobiles to consumers to providing transportation as a service(TAAS). Tesla is no longer pushing 50% CAGR in automotive sales because in a couple of years, the major sellers will be robotaxis and by then Giga-Mexico should be built and maybe Giga-India and an expansion in Giga-Shanghai. While the affluent consumer may continue to buy personal vehicles, especially in rural areas, TAAS will swiftly tank low end vehicle sales and sales in urban markets. The market will shift towards some high end consumer sales, massive amounts of robotaxis, a lot of autonomous delivery vehicles of various sizes, along with semitrucks and vans. I believe Musk sees this coming and is playing 4D chess while everyone else (especially dimwitted Wall Street analysts) are still trying to figure out checkers.
Old fart here ….. calling today’s interest rates “sky high” ignores a lot of history. Rates now (post 2022) are returning to what I consider more normal levels. People a lot younger than my 70 years have been treated to interest rates that historically were unusually low. After the 2009 worldwide financial meltdown, central banks everywhere, including in the USA, loaned money to banks at 0%, and governments borrowed and spend massive sums to prop up economies. That massive cash infusion combined with stunningly low loan rates was the abnormal status for over a decade. Long enough for it to seem normal to a whole generation of people. It wasn’t normal. And the massive government debt, and massive increase in the money supply that was incurred strongly implies that interest rates won’t go back to the low levels of a few years ago for decades to come. People are going to have to adjust to higher borrowing costs by saving more, and borrowing less. And the flip side of higher interest rates is that savings now actually make some interest.
If Tesla actually comes out with the 3 new cars next year and one of those is a low cost model with a steering wheel, many of these automakers will go bankrupt in 2025 and 2026.
