Rivian Just Evolved into a True Tesla Competitor

This $5 billion Volkswagen alliance was the lifeline Rivian needed... [Derby City Daily logo]( [Derby City Daily logo]( June 26, 2024 [Rivian Just Evolved into a True Tesla Competitor]( By Andy Swan Until Tesla’s (TSLA) Cybertruck hit the roads this year, the only real option for consumers looking to “electrify” their beloved pickup truck was Rivian (RIVN). The California upstart's line of luxury “adventure vehicles” includes fully electric pickups and SUVs, adorned with a distinctive oval headlight design. Rivian makes a good-looking truck, I’ll admit. I had a blast adventuring around Colorado in one recently. (I did miss my Tesla at home, though.) The problem is, Rivian has faced substantial difficulties in getting its EVs to consumers. Amid mounting financial troubles, Rivian was forced to halt construction on a new Georgia production factory in March. The company has yet to return profitable margins since its IPO; revenue has declined over the past three quarters... and it's racked up a sizable debt. But a new $5 billion deal with Volkswagen hands Rivian a potential lifeline. The newly announced deal includes a joint venture to develop new EV software with Rivian’s expertise and an up-to-$5-billion investment from Volkswagen that aims to bolster Rivian’s financial stability and growth prospects. It’s a massive move that could make Rivian a formidable competitor, even against the reigning champ... SPONSORED AD [Elon Did It Again: This Could be Bigger than Tesla]( After revolutionizing online payment processing (PayPal), space exploration (SpaceX), and the auto industry (Tesla)... He’s getting ready to do it again with [his new AI venture](. This could be bigger than Tesla, bigger than SpaceX, and bigger than Paypal. [Click here to get the details]( Rivian's Newfound Competitive Edge Rivian has been positioned as a potential competitor to Tesla since the very beginning. Tesla commands a clear lead in the U.S. EV market, though, holding 52.1% as of the first quarter, while Rivian and Volkswagen each held a 5.1% share. Although Tesla’s market presence is dominant, Rivian’s strategic partnership with Volkswagen aims to leverage their combined strengths. Volkswagen benefits from Rivian’s advanced EV software, while Rivian gains critical funding and support to develop new models and reduce operating costs. And that new manufacturing plant in Georgia Rivian had to put on hold? That’s included, too. Rivian’s competitive position was rising even before this. It’s no secret Tesla struggled with the [Cybertruck launch]( which faced delays, recalls, and a price increase that lost its federal EV tax credit. Conversely, Rivian’s R2 model qualifies for such tax credit, improving its market appeal. According to LikeFolio’s consumer insights, Rivian is walloping Tesla in the all-important Consumer Happiness metric, scoring 67% over TSLA’s 56% on a 90-day moving average. This could give it a critical edge. SPONSORED AD [The Biggest Prediction of Louis Navellier’s 47-Year Career]( A historic financial mania is coming. It’ll open a unique new investment vehicle on a scale he hasn’t seen since 1994, which could double your money 6 different times if you get positioned immediately. [Click here to learn more (and get 4 free recommendations)]( We still love Tesla – and it’s likely to remain [the dominant player]( in the EV market, especially with CEO Elon Musk at the helm. The guy is brilliant, and [this mind-blowing new invention]( is proof. ([Click here to see it for yourself]( But between this new alliance with Volkswagen and strategic cost reductions and product development, Rivian looks like a promising competitor with significant upside potential. And we can’t help but root for the underdog. Until next time, [Andy Swan's signature] [Andy Swan's signature] Andy Swan Founder, LikeFolio Discover More Free Insights from Derby City Daily Here's what you may have missed from Derby City Daily this week... ✓ [John Deere: The Ambitious AI Play in Your Own Backyard]( ✓ [“Skinny Shots” Are Here to Stay: 3 Unexpected Plays]( ✓ [With Reels, TikTok’s Loss Is META’s Gain]( Get Instant Access Click to read these free reports and automatically sign up for research throughout the week. [The Infinite Income Manifesto]( [25 Doomed Blue Chip Stocks]( [5 Unapologetically Profitable Stocks for 2024]( © 2024 TradeSmith, LLC t/a Derby City Insights. All Rights Reserved. 1125 N. Charles Street, Baltimore, MD 21201 To unsubscribe or change your email preferences, please [click here](. [Terms of Use]( | [Privacy Policy](