RIVN Stock Hits Fresh 52-Week Lows After Partner Volkswagen Reportedly Weighs Xpeng Software For European Cars

• Core brand chief Thomas Schaefer is expected to present the idea to management on Tuesday, the report said. 
• Volkswagen and Rivian entered a major software partnership in late 2024 through a 50-50 joint venture that gives the German automaker access to Rivian’s electrical architecture and software stack for future Western-market vehicles. 
• Until now, the group has kept the distinction clear: XPeng software for China and Rivian for Western markets.

Shares of Rivian Automotive (RIVN) slipped 3% on Monday and hit a fresh 52-week low, after reports that German automaker Volkswagen is weighing using China-developed vehicle software for a large share of its European mass-market electric lineup, a move that could reduce reliance on its U.S. partner.

According to a Reuters report, citing Manager Magazin, Volkswagen’s China Electronic Architecture, created jointly with Chinese EV maker Xpeng for the Chinese market, could underpin future vehicles from the group’s core Volkswagen, Skoda, and Cupra brands in Europe.

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Core brand chief Thomas Schaefer is expected to present the idea to management on Tuesday. The proposal would apply to about three-quarters of next-generation models from those three brands as they expand their electric offerings in Europe, the report added.

Rivian, Volkswagen Partnership

Volkswagen and Rivian entered a major software partnership in late 2024 through a 50-50 joint venture that gives the German automaker access to Rivian’s electrical architecture and software stack for future Western-market vehicles, while providing the U.S. startup with up to $5.8 billion in investment by 2027.

The arrangement is part of Volkswagen CEO Oliver Blume’s effort to overcome earlier setbacks at Volkswagen’s in-house software unit, and has advanced with completed winter testing on early models and the release of further funding tranches, positioning the technology for use in vehicles.

Until now, the group has kept the distinction clear: XPeng software for China and Rivian for Western markets.

How Did RIVN Retail Traders React?

On Stocktwits, retail sentiment around RIVN stock rose from 'neutral' to 'bullish' territory over the past 24 hours, while message volume stayed within 'normal' levels.

A Stocktwits user called for Rivian management to sell the company given the stock’s drop.

Another user, however, said the stock is looking like an attractive purchase at current levels.

RIVN stock has dropped 42% year-to-date.   

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