Costly collaboration: Why Volkswagen’s $5.8B Rivian Investment Seems Doomed

By investing $5.8 billion in electric vehicle pioneer Rivian, Volkwagen hoped the startup’s expertise would improve its EV presence as well as generate profits. However, Rivian’s $80,000 trucks have proved to create low consumer demand, reports Douglas McIntyre, with projected sales of just 40,000 units this year. With Rivian’s $7 billion losses and American buyers mostly seeking more-affordable EVs, McIntyre argues that this partnership will likely fail to deliver returns for either company.