VW and Rivian's new $22,500 car proves cheap EVs don't have to be low-tech, the Tesla rival's software boss says

• VW is teaming up with Rivian to make the German brand's cheapest-ever EV: the $22,500 ID Every1.
• Rivian's software boss told BI it's proof that cut-price electric cars don't need to be low-tech.
• The race to build lower-cost EVs is heating up, with Slate Auto recently launching a $25,000 truck.

Volkswagen and Rivian are teaming up to build more affordable electric vehicles, but that doesn't mean they're planning to skimp on high-tech features.

The Tesla rival is partnering with Volkswagen to provide technology for a new $22,500 electric car, and Wassym Bensaid, Rivian's chief software officer, said the coming EV wouldn't compromise on tech despite its low price point.

VW and Rivian announced a deal last year for the German car giant to invest over $5 billion in the startup and form a joint company to develop next-generation software and EV technology, with Bensaid and VW exec Carsten Helbing as co-CEOs.

In March, VW unveiled the ID Every1, a compact electric hatchback set to be the first VW vehicle to include software developed in the joint venture.

The 13-foot-long four-seater is set to go on sale in Europe by 2027 for about 20,000 euros, roughly $22,500. VW has not said whether it has any plans to bring it to the US.

"It's something which is extremely close to my heart because it's a way to bring that technology into many more cars," Bensaid told Business Insider.

"Inexpensive cars shouldn't have low technology, and this is the beauty of the setup that we're enabling through the joint venture," said the Rivian executive, who spoke with BI on the sidelines of the Financial Times' Future of the Car conference.

Bensaid said the lower-cost hatchback would leverage Rivian's software architecture to cut costs.

Rather than individual computers controlling components like seats, lights, and doors, all of ID Every1's features are set to be handled by a central computer built on Rivian's technology, which Bensaid said would save VW money because it uses fewer parts and simplifies the design.

The ID Every1 will not be the first vehicle to use technology developed by the Rivian-VW joint venture — that's Rivian's R2, which is set to launch next year — but it's a huge step for both companies.

A lack of affordable EVs remains one of the main reasons customers are reluctant to go electric, and VW is betting that its cheapest-ever battery-powered offering will help fill that gap.

It's not the only one making that bet. The startup Slate Auto caused a stir last month when it unveiled a $25,000 pickup truck, which is set to go on sale in the US in 2026.

The Slate truck has bucked the trend of vehicles becoming more computerized and packed with smart technology.

The base model lacks power windows, a radio, and any kind of built-in infotainment system, with Slate's CEO telling BI that the company had focused on simplicity to keep the price as low as possible.

So far, consumers haven't seemed that bothered by the lack of bells and whistles, with the Jeff Bezos-backed startup receiving 100,000 refundable $50 reservations in just two weeks.

When asked about Slate's approach, Bensaid said Rivian welcomes more competition in the EV market but had made a "different choice" in how it approaches making electric cars more affordable.

"Inexpensive cars shouldn't be cars with limited features," he said, adding that Rivian believed it was possible to deliver a "rich user experience" at a low price point by making vehicle technology more efficient.

"That is our approach," Bensaid said. "We would like to enable choice for customers but without such severe compromise in terms of the overall experience."