Rivian receives $1 billion from Volkswagen after completing winter tests on the ID.EVERY1

Rivian cleared a major checkpoint in its Volkswagen partnership. The electric vehicle winter testing on the first cars Rivians software and electrical setup, which unlocks $1 billion from the German automaker.

The tests involved Volkswagen‘s ID.EVERY1. It’s the first vehicle under their deal getting Rivians technology. Volkswagen Fridae testing well.

The $1 billion payment is splittwo Rivian gets $750 million in equity. remaining $250 million either equity or convertible debt, depending on prototype vehiclelkswagen for testing. The companies

already invested more than $3 billion in And theres more lined up. Starting in October, Rivian borrow up to $1 billion from Volkswagen. Once the first vehicle with their technology goes on sale, Rivian $460 million in equity. Total potential: $5.8 billion.

Winter testing happened in Phoenix and Arjeplog, Sweden. Teams put the ID.EVERY1 through its paces, plus vehicles from Audi and Scout. Scout is Volkswagens American brand, off-road trucks and SUVs.

Software performs in harsh conditions

Volkswagen said the software held up fine in harsh winter weather and demanding driving. They called it groundwork for what comes next in the partnership.

Oliver Blume, Volkswagen Groups chief, talked about “accelerating toward the future” and praised how fast the joint venture is moving. His comments came after reports suggestee partnership was delays software integration issues.

The arrives just ahead of Rivian‘s R2 SUV launch. Company founder and CEO RJ Scaringe has the Raybe the most important thing we’ve launched to date. oick production ramp-up and strong

Rivian recently presented at the RSA Conference on vehicle cybersecurity. The appearance signals how the company positions itself as a tech and software outfit, not just another automaker. part oy Volkswagen is access to Rivians technology.

Additional funding sources emerge

shares Friday morning, trading around $15.21. Analysts about 15 percent higher tharrent

Wall Streets divided. Out of 22 analysts covering the stock over three months, nine rate it a buy, seven say hold, six recommend selling. The consensus hold.

Rivian also pulled in $300 million recently through a private placement with SMB. Theyve got a $1.25 billion deal with Uber for robotaxi vehicles too.

The company has been working to diversify its revenue streams. Earlier this year, Rivian‘s stock surged 27 percent after reporting better-than-expected earnings, though the company remains unprofitable. Forecasts show they won’t turn a profit for at least three years.

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