As Sales Wobble, Rivian Secures a $1 Billion Lifeline from Volkswagen

In a monumental feat, the Electric Vehicle (EV) startup Rivian has secured $1 billion from Volkswagen. The substantial funding comes in the form of a share sale, injecting a significant boost to the EV startup’s coffers. This welcome news is juxtaposed against Rivian’s less impressive sales figure for Q2 2025, reporting a delivery of 10,661 vehicles. This suggests a worrying 23% slide in sales compared to Q2 2024, and only a minimal recovery from a challenging Q1 performance, which saw Rivian delivering a mere 8,640 vehicles.

Although Rivian has a history of burning through cash, it is banking heavily on the 2026 release of its more affordable R2 SUV. The latest funding is the fruit of Rivian’s labours, posting its second-ever gross profit earlier this year. In 2024, the company announced a lucrative technology joint venture with Volkswagen to the tune of $5.8 billion. In this venture, Rivian offered personnel resources, its software and electrical designs.

Furthermore, Rivian’s prospects could become even more uncertain if President Trump’s proposed ‘One Big Beautiful Bill’ comes into play. The proposed legislation, if passed, would terminate the federal EV tax credit, a significant incentive that currently allows a $7,500 reduction on the price of new electric vehicles. Time will tell how this landscape pans out for the ambitious EV startup. Rivian must navigate these turbulent waters carefully, plotting a course that ensures survival and, ultimately, success.