Rivian receives the next $1B from Volkswagen as sales struggles continue

Rivian has secured the next $1 billion tranche from Volkswagen as part of their ongoing partnership, following the EV startup achieving its second-ever gross profit in Q1 2025. This funding comes through a share sale and builds on a prior $1 billion convertible note provided by Volkswagen late last year. The two companies have a joint venture valued at up to $5.8 billion, with Rivian contributing employee expertise and its software and electrical architecture designs, which Volkswagen plans to use in its future electric vehicles. Despite this financial boost, Rivian continues to face significant sales challenges. The company reported delivering 10,661 vehicles in Q2 2025, a 23% decline compared to the same quarter in 2024, and only a marginal improvement over its difficult first quarter. Rivian has lowered its 2025 sales forecast to between 40,000 and 46,000 EVs, which would still represent a decrease from previous years. Contributing factors include increased production costs