Rivian Just Earned Another $1 Billion Investment From Volkswagen. Here's Why That's An Important Milestone for the Stock.

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0;switch(e){case"expanded_panel":o='{promoMarkup}{notifMarkup}',a=n._store.getNotifications(),r=n._generatePanelMarkup(o,a),i.innerHTML=r;break;case"error_panel":r=(o='{errorMsg}').replace("{errorMsg}",n._config.panel.errorMsg),i.innerHTML=r}t&&t()}else t&&t(new Error("No panel parent"))}},{key:"createPanelParentNode",value:function(e){e&&(e.innerHTML='',this._panelNode=document.getElementById(P))}},{key:"updateBadgeNode",value:function(e){if(e){var t=this._store.getNotifications().newCount,n=this._config.badge.maxCount;if(t){var o=t>n?n+"+":t;e.innerHTML=o}else e.innerHTML=""}}},{key:"addStyles",value:function(e){if(e&&"undefined"!=typeof window){var t=document.getElementById(this._config.panel.styleTagId);t||((t=document.createElement("style")).type="text/css",t.id=this._config.panel.styleTagId,t.innerText=e,document.head.appendChild(t))}}}]),e}(),j=function(){function e(t,n,o){E(this,e);var i=this;i._store=n,i._view=o,i._config=t;var 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e=this;e._store.resetNewCount(),e._view.updateBadgeNode(e._badgeNode),M(e._badgeNode,e._config.badge.hideClass)}},{key:"_showIndicator",value:function(){this._indicatorNode&&(this._store.getNotifications().newCount?M(this._indicatorNode,this._config.panel.indicatorClass):I(this._indicatorNode,this._config.panel.indicatorClass))}},{key:"_showBadge",value:function(){var e=this;e._store.getNotifications().newCount?I(e._badgeNode,e._config.badge.hideClass):M(e._badgeNode,e._config.badge.hideClass)}}]),e}(),F={promos:{eligibleBodyClass:"display-push-promos",enableNotifOnboard:!0,bypassEligibleClassCheck:!1,notifOnboardBtnLabel:"Notify Me",notifOnboardMsg:"Get alerts for breaking news and top stories",promoLogo:"https://s.yimg.com/cv/apiv2/ae/news/circle_bell.png",showYahooLogo:!0,subscriptionTopic:"gondor_homerun_news"},badge:{hideClass:"",maxCount:5,selector:""},panel:{emptyPanelMsg:"You have no new 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In that regard, it is following Tesla's (NASDAQ: TSLA) path. However, Rivian isn't doing the same things as Tesla, and a recent $1 billion cash inflow from Volkswagen highlights both the similarities and the differences in Rivian's approach.Building a capital-intensive manufacturing business from the ground up is difficult and expensive. Rivian has spent billions on the effort already and is likely to spend billions more. That makes access to capital very important. Rivian has a deal with Volkswagen that calls for the giant European automaker to invest as much as $5.8 billion in the upstart's business over time.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »Image source: Rivian.The most recent installment was a $1 billion investment related to a key development milestone. Essentially, Volkswagen successfully tested Rivian technology in its own vehicles. The cash infusion will help Rivian with its big near-term project: launching a more affordable version of its own truck.In this, Rivian is following Tesla's lead. First, Tesla launched high-end electric vehicles, and then, after getting its manufacturing processes down, it brought out a mass market vehicle. An extra $1 billion will help Rivian continue down this path.From Rivian's perspective, the cash infusion from Volkswagen is important for its internal vehicle development. However, unlike Tesla, Rivian has a broader view of its technology. As noted, the cash from Volkswagen was tied to that carmaker's use of Rivian technology in Volkswagen vehicles. Rivian is hoping to be both a vehicle manufacturer and an industry supplier.So the cash Rivian is receiving from Volkswagen is important, but equally important is the successful execution of Rivian's supplier strategy. This two-pronged approach differentiates Rivian from Tesla and increases the possibility of long-term success. Indeed, when Tesla started building electric cars, there was basically no competition. Today, Rivian has to compete with all of the major auto companies and other EV start-ups. Becoming a supplier to the competition broadens the company's sales opportunity and leverages its technology investments.When you step back and look at the big picture, the latest $1 billion investment from Volkswagen is huge. It provides Rivian with the cash it needs to continue building out its own EV business. 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