Rivian has secured an additional $1 billion from German automotive leader Volkswagen as part of an ongoing strategic partnership, the electric vehicle startup announced Wednesday. The latest infusion comes through a share sale linked directly to meeting key milestones in their agreement—a partnership originally announced in 2024, valued at up to $5.8 billion. Under the collaboration, Rivian contributes software expertise, electrical architecture, and technical manpower to help Volkswagen develop next-generation EV technology for its future vehicles. A first payment of $1 billion was provided late last year in the form of a convertible note.
Despite this substantial financial backing, Rivian continues to struggle with sales performance. The company delivered approximately 10,661 vehicles in the second quarter of 2025, marking a 23% drop compared to the same period the previous year. Although this represents a modest improvement from the difficult first quarter—when only 8,640 vehicles were delivered—Rivian continues to face challenging market conditions.
Much of the ongoing sales pressure stems from rising production costs partly brought on by former President Trump’s tariffs and ongoing international trade disputes. These disruptions have forced Rivian to revise its sales targets downward for 2025 significantly. Currently, the company suggests it remains on track to deliver between 40,000 to 46,000 vehicles this year, yet even accomplishing the upper limit of that projection would result in lower total annual sales than those achieved over the past two years.
Navigating these turbulent market conditions adds financial strain to the electric vehicle startup, which has historically spent billions as it attempts to scale its production and bring new, more affordable vehicles to market. Rivian’s future growth remains heavily dependent on the success of its upcoming R2 SUV, an economically positioned model scheduled to debut in 2026.
Earlier this year, Rivian posted only its second-ever quarterly gross profit, which triggered the latest $1 billion payout from Volkswagen. Achieving this crucial financial milestone followed years of efforts to streamline production processes and substantially reduce manufacturing costs related to its flagship consumer vehicles—the R1T pickup truck and R1S SUV. Even with these efforts yielding considerable cost savings, Rivian continues losing money overall.
The outlook for Rivian and similar EV manufacturers may face further headwinds from pending legislation labeled the “One Big Beautiful Bill,” championed by Trump. Currently moving through Congress, this proposal includes ending the federal electric vehicle incentive program, which currently provides up to $7,500 in tax credits for new EV buyers. Should it pass and take effect in September, industry experts predict a significant further reduction in electric car affordability, compounding existing difficulties for Rivian and its competitors.
