11:07 AM EST, 11/13/2024 (MT Newswires) -- Rivian Automotive's ( RIVN ) joint venture with Volkswagen Group is "the right partner announcement coming in at the right time," as the company looks to fund its electric vehicle roadmap in the coming years, Wedbush Securities said in a note on Wednesday.

Analysts, including Daniel Ives, said the partnership would provide the necessary funding for the R2 model ramp-up and the GA plant's R2/R3 midsize platform, "which we view as a large step in the right direction and a key move for Rivian going forward." While this announcement is exciting, the market will likely remain focused on Rivian's R1 production, optimization, the Georgia plant, and its path to profitability over the next quarter to year, they added.

"After seeing lots of choppiness and pain points in the supply chain in the past year, we believe this is the right partner announcement coming in at the right time as Rivian Automotive ( RIVN ) looks to navigate the ship in stormy waters with sufficient capital to fund its EV roadmap over the coming years," the analysts said.

The venture will focus on developing next-gen electrical architecture and software for both companies' future EVs. Volkswagen plans to invest up to $5.8 billion in Rivian and the joint venture by 2027. The joint venture will operate as an independent company led by Wassym Bensaid of Rivian and Carsten Helbing of Volkswagen, the note said.

Wedbush said that it maintains its outperform rating and $20 price target on Rivian Automotive ( RIVN ). Shares of the company rose over 18% in recent trading activity.

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