Volkswagen to invest up to $5B in Rivian

Original Article ↗ Hacker News Discussion ↗

VW–Rivian Deal and Strategy

  • Compared to Microsoft’s 1997 Apple investment: seen less as pure cash and more as strategic tech and confidence boost.
  • Some view VW as lagging in EVs and needing Rivian’s software/architecture to catch up, especially against Chinese EVs.
  • Others argue VW’s tech is fine; the main issues are pricing and sales, not capability.
  • Unclear exactly what VW wants most: Rivian’s platform for trucks/vans, software stack, or an options-style hedge alongside its own Scout brand.

Rivian’s Position and Finances

  • Widely noted that Rivian loses large sums per vehicle and burns cash quickly; some call it “circling the drain.”
  • Investment seen as possibly essential to reaching next-gen models (R2/R3).
  • Concern that sharing its software erodes Rivian’s main differentiator, leaving it to compete on hardware with an OEM that already excels there.

Tesla, BYD, and Legacy Automakers

  • Debate over analogies: Tesla as Apple vs Android vs Nokia/BlackBerry; BYD sometimes cast as Samsung or even the true “Android of cars.”
  • Some think US commenters underestimate Chinese EV and battery leaders (BYD, CATL).
  • VW highlighted as strong in platforms and range of models, selling many more cars overall than Tesla but fewer BEVs.

EV Technology and Batteries

  • Discussion of fast-charging batteries (e.g., ~10-minute full charge) and very high-power chargers; grid capacity identified as the main bottleneck, not terminal hardware.
  • Interest in iron-based and sodium-ion chemistries; focus mostly on cost and manufacturing scale rather than huge density gains.

Software, Autonomy, and UX

  • Strong disagreement over Tesla’s driver-assist: some say competitors (Mercedes, BMW, GM SuperCruise, BYD, Renault) now do better in lane changes, comfort, and avoiding phantom braking; others say Tesla’s FSD is far less constrained than systems like Drive Pilot.
  • General sense that EV hardware is commoditizing and UX, software quality, and model variety will drive differentiation.

CarPlay/Android Auto Debate

  • Rivian’s (and Tesla’s, GM’s) refusal to support CarPlay/Android Auto is heavily criticized by some as anti-consumer and data/subscription motivated.
  • Others report being satisfied with Tesla/Rivian-native systems and see phone mirroring as unnecessary or distracting.
  • CarPlay/AA praised for longevity, flexibility (choice of nav/audio apps), and avoiding automakers’ weak or short-lived infotainment; critics note reliability issues in some implementations.

Design, Use Cases, and Market Perception

  • Mixed views on Rivian aesthetics: some find them ugly and costly to repair, others praise their looks (especially future R3) and see them commonly in affluent mountain towns for light truck use.
  • VW’s past EV designs (ID.3/ID.4) are criticized, though newer styling is seen as improving.

Valuations and Historical Context

  • Reminder that Rivian once briefly surpassed VW’s market cap; many see those EV valuations (including Tesla’s) as still detached from fundamentals and likely to correct.