Rivian Shares Hit Fresh 52-Week Low at $11.43 After Report That Volkswagen Weighs Xpeng Co-Developed Software for Europe

Rivian Automotive (RIVN) closed Monday, October 26, at $11.43, down about 3.4% from Friday's $11.83 close and at a fresh 52-week low. The shares first broke to a new low of $11.60 in morning trading before extending the slide, and 24/7 Wall St. noted the move undercut a 52-week low set only three sessions earlier. The stock is down about 42% year to date.

The trigger was a report, not a decision. Germany's Manager Magazin reported on Monday, in a story relayed by Reuters, that Volkswagen core brand chief Thomas Schaefer wants to use the China Electronic Architecture (CEA), developed by VW's China operations with Xpeng (XPEV), in about 75% of next-generation Volkswagen, Skoda and Cupra models in Europe (CnEVPost). His team reportedly estimates savings of €4 billion to €5 billion, and he was expected to present the proposal to group management on Tuesday, October 27. Volkswagen declined to comment (Motor1), and no Rivian statement has been reported.

The report matters because Volkswagen's 2024 software joint venture with Rivian carries up to $5.8 billion in investment by 2027. Software and services brought in $515 million of Rivian's second-quarter revenue, about 60% of it from the joint venture, according to 24/7 Wall St.. The joint venture has not yet put a production vehicle on the road, while CEA already ships in China, and Motor1 notes that Rivian's software could stay relevant for other vehicles and markets, with Audi and Porsche having their own reasons to keep the partnership.

Valuation views remain split. MarketBeat's tally of analyst ratings shows a Hold consensus with a $19.86 average price target, and Simply Wall St argues the shares look undervalued against a community fair value of $19.

The next test is Rivian's third-quarter report on October 29 after the market close (Rivian 8-K). Rivian already reported record deliveries of 19,248 vehicles for the quarter and reaffirmed 2026 delivery guidance of 65,000 to 70,000, so the focus may shift to whether that volume is narrowing losses and cash burn. Investors may also watch for any Volkswagen decision after Schaefer's presentation and for comments from Rivian on the joint venture.