Rivian cleared a major checkpoint in its Volkswagen partnership. The electric vehicle maker wrapped up winter testing on the first cars using Rivian’s software and electrical setup, which unlocks another $1 billion from the German automaker.

The tests involved Volkswagen’s ID.EVERY1. It’s the first vehicle under their deal getting Rivian’s technology. Volkswagen said Friday the testing went well.

The $1 billion payment is split two ways. Rivian gets $750 million in equity. The remaining $250 million is either equity or convertible debt, depending on which prototype vehicles Volkswagen provided for testing. The companies didn’t spell that part out.

Volkswagen’s already invested more than $3 billion in Rivian. And there’s more lined up. Starting in October, Rivian can borrow up to $1 billion from Volkswagen. Once the first vehicle with their technology goes on sale, Rivian receives another $460 million in equity. Total potential: $5.8 billion.

Winter testing happened in Phoenix and Arjeplog, Sweden. Teams put the ID.EVERY1 through its paces, plus vehicles from Audi and Scout. Scout is Volkswagen’s American brand, making off-road trucks and SUVs.

Volkswagen said the software held up fine in harsh winter weather and demanding driving. They called it groundwork for what comes next in the partnership.

Oliver Blume, Volkswagen Group’s chief, talked about “accelerating toward the future” and praised how fast the joint venture is moving. His comments came after some reports suggested the partnership was running into delays over software integration issues.

The money arrives just ahead of Rivian’s R2 SUV launch. Company founder and CEO RJ Scaringe has called the R2 “maybe the most important thing we’ve launched to date.” Rivian’s betting on a quick R2 production ramp-up and strong sales.

Rivian recently presented at the RSA Conference on vehicle cybersecurity. The appearance signals how the company positions itself as a tech and software outfit, not just another automaker. That’s part of why Volkswagen is pouring billions into access to Rivian’s technology.

Additional funding sources emerge

Rivian shares edged up Friday morning, trading around $15.21. Analysts peg the stock at $17.50 on average, about 15 percent higher than current levels.

Wall Street’s divided. Out of 22 analysts covering the stock over three months, nine rate it a buy, seven say hold, six recommend selling. The consensus lands at hold.

Rivian also pulled in $300 million recently through a private placement with SMB. They’ve got a $1.25 billion deal with Uber for robotaxi vehicles too.

The company has been working to diversify its revenue streams. Earlier this year, Rivian’s stock surged 27 percent after reporting better-than-expected earnings, though the company remains unprofitable. Forecasts show they won’t turn a profit for at least three years.

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