Volkswagen's $5 billion investment in the "Tesla killer" Jia Yueting's confidence was ignited!

Brother Dao said car Z

2024-06-28 10:42

A sky-high investment by Volkswagen of Germany ignited the confidence of Jia Yueting, the founder of FF!

A few days ago, the German Volkswagen Group announced that it plans to invest $5 billion in a joint venture with Rivian Automotive, a new American car-making force, of which $1 billion is an immediate investment, and the remaining $4 billion will be added in 2026 to jointly create electrification architecture and software technology.

Volkswagen's $5 billion investment in the "Tesla killer" Jia Yueting's confidence was ignited!

For Rivian, a Tesla killer who has been "reducing costs and increasing efficiency", this is tantamount to a timely rain, and its stock price also reacted quickly, once soaring by more than 50%. It is worth noting that this sky-high investment not only brought confidence to Rivian, but also ignited Jia Yueting's confidence.

"Recently, Volkswagen has invested $5 billion in Rivian, and this huge investment has made me more determined in the strategy and value of FF, and I hope that the value accumulated by FF will explode as soon as possible", Jia Yueting believes that FF has a more spiral intelligent electric vehicle platform, as well as a unique AI platform and software technology, and the current capital market value and real value of FF are completely different from the market.

It is understood that the latest stock price of FF, which has continued to rise in recent days, is $0.459 per share, while its peak has reached $20.75 per share.

Volkswagen's vote for the "Tesla killer" ignited Jia Yueting's confidence?

Founded in 2009 and headquartered in Elvine, California, Rivian was originally a Mainstream Motors car manufacturer specializing in sports cars in the United States, but in 2010 the founder changed the name of Mainstream Motors to Rivian and moved from sports cars to electric pickup trucks.

The market value of this new car-making force in the United States once exceeded the 100 billion dollar mark, becoming the seventh largest IPO in the history of the United States, and its other name, "Tesla Killer", is even more popular. However, in the subsequent development, Rivian also faced various crises, including insufficient production capacity, batch recalls, cost reduction and efficiency improvement under losses, etc.

To some extent, his current situation is a little similar to Jia Yueting's FF, and he is in a difficult situation. However, the sky-high investment brought by Volkswagen is not only a timely rain for Rivian, but also significantly boosts the confidence of the AI EV industry in the United States. In this way, there is a story that ignites Jia Yueting's confidence.

In Jia Yueting's view, Volkswagen's investment in Rivian is mainly based on five reasons and value returns: 1. Advanced vehicle electric platform and software technology and feedback to the Volkswagen Group; 2. Electric pickup truck models and SUV models; 3. The unique value of AI EV companies in the United States; 4. The United States is the largest blue ocean market for AI EVs; 5. Volkswagen's 5 billion investment in Rivian may bring a huge return on capital.

At the same time, Jia Yueting also pointed out that FF is different from Rivian, and even pointed out that FF may have more potential. Jia Yueting said that Rivian's models are mainly aimed at the tower waist market. Different from Rivian, there will be a larger blue ocean space for FF model planning: one is the spire model and the spire market of FF, and the other is the second brand mass model and mass market of the bridge strategy. The current capital market value of FF is completely different from the real value in the market.

But what Jia Yueting didn't say is that FF is different from Rivian not only in brand positioning!

Is there a comparison between FF and Rivian? When will the "value" of FF be revealed?

As a new car-making force in the United States, Rivian, like many new domestic car-makers, is still in the red, according to the financial report, Rivian lost $1.45 billion in the first quarter of this year, mainly due to the renovation and restructuring of its factory in Normar, Illinois, to launch newer versions of the R1T pickup truck and R1S SUV electric vehicles before the launch of the next generation of electric vehicles in 2026.

Meanwhile, the company's cash and cash equivalents were $7.9 billion on March 31, 2024, well below the $9.0 billion at the end of 2023. At this rate of cash consumption, it is unclear whether Rivian will be able to survive. The predicament is similar to Jia Yueting's FF, both of which are short of money. But the difference is that Rivian built the car and sold it.

According to the data, in the first quarter of 2024, Rivian produced a total of 13,980 vehicles and delivered a total of 13,588 vehicles, although it decreased by about 3% quarter-on-quarter, but at least more than 10,000 delivery capacity. On the other hand, Jia Yueting's FF has only delivered 12 cars so far, and according to the latest statement, it is trying to deliver a new car every month, which is ......

Before Rivian's IPO, Tesla CEO Elon Musk once joked about Rivian's high valuation: "Maybe they should be required to deliver at least one car per $1 billion valuation before the IPO." If you look at it by this standard, it may be debatable whether FF is undervalued.

It is worth noting that FF does have the meaning that good things are coming, and the CEO of FF's Middle East partner Master Investment Group and members of the UAE royal family visited FF on June 25, and the two sides had a good discussion and reached a plan to strengthen cooperation. I don't know if Jia Yueting's FF will also get a sky-high investment.

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