Rivian (RIVN) & Volkswagen Eye EV Tech Monetization—Including Combustion Cars

Disruption or Desperation? Automakers Bet on Selling EV IP to Stay Alive

Rivian and Volkswagen are flipping the script—licensing cutting-edge EV tech could become their next revenue stream. Even legacy combustion vehicles might get a green-tech facelift.

The move reeks of creative monetization as traditional automakers struggle with thin margins. Because nothing says 'future-proofing' like selling your crown jewels to competitors while still building gas guzzlers.

Wall Street will lap this up—nothing excites investors like a good old-fashioned pivot-to-software narrative. Even if it's just selling spare parts from your R&D lab.

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The joint venture between Rivian and Volkswagen is developing a state-of-the-art zonal electronic architecture and functional software called SDV (Software-Defined Vehicle) architecture. They highlighted that this architecture offers highly automated driving features and advanced infotainment solutions that can be continuously enhanced via over-the-air updates, with no service center visits required. 

The collaboration between the two companies came as Volkswagen struggles with tariffs in the U.S., weak deliveries in China, and subdued demand in Europe. The German automaker committed to investing $5.8 billion in Rivian. Volkswagen intends to leverage its partnership with Rivian to close the gap with EV giant Tesla (TSLA) and Chinese automakers.

Volkswagen, Rivian Highlight the Progress of Their EV Tech

Rivian will use the technologies from RV Tech for its upcoming products, R2, R3, and R3X, and to keep its existing vehicle models up to date with the latest software. The company’s CEO RJ Scaringe said that the EV company’s much-awaited R2 SUV, scheduled to be launched in the first half of 2026, will demonstrate the advancements that RV Tech has made.

Notably, the joint venture plans to send vehicles from the Volkswagen, Scout, and Audi brands into the first testing phase in Q1 2026, to evaluate the developed SDV features in winter conditions.

Meanwhile, at an event in Palo Alto, California, Wassym Bensaid, Rivian’s software chief and RV Tech co-chair, told journalists that the technology being developed “could become an opportunity” for other carmakers, Bloomberg reported. Bensaid stated that the opportunity to earn from licensing the technology “is a very different ballgame,” with a different margin profile than that related to car manufacturing. Interestingly, in the past, automakers Ford (F) and Mahindra & Mahindra have used Volkswagen’s first-generation platform for their own electric models.

Additionally, Carsten Helbing, co-CEO of RV Tech, stated that while the main focus of the architecture being developed is on battery electric vehicle (BEV) implementation, the joint venture could also use it for ICE vehicles in the future.

Is Rivian Stock a Buy, Hold, or Sell?

Rivian recently reported better-than-expected third-quarter results. While investor sentiment has improved for the EV maker and there is Optimism about the upcoming R2 launch, Wall Street is sidelined on the stock due to worries about the impact of the end of the $7,500 EV tax credit and liquidity concerns.

Overall, Wall Street has a Hold consensus rating on Rivian Automotive stock based on nine Holds, five Buys, and five Sell recommendations. The average RIVN stock price target of $13.45 indicates 23.23% downside risk from current levels. RIVN stock has risen 32% year-to-date.