Volkswagen's $5 billion investment in Rivian boosts EV maker's shares
How much did Rivian's shares surge after the investment announcement?
Rivian's shares surged about 50% in extended trade after Volkswagen announced its intention to invest up to $5 billion in the U.S. electric-vehicle maker. The investment is part of a new, equally controlled joint venture to share EV architecture and software between the two companies.
What is the value of Volkswagen's investment in Rivian?
Volkswagen is investing up to $5 billion in Rivian, with an initial investment of $1 billion through a convertible note. The remaining $4 billion is expected by 2026, including plans for $1 billion each in 2025 and 2026, followed by $2 billion in 2026 related to a joint venture to create electrical architecture and software technology6.
What are the main objectives of the Volkswagen-Rivian joint venture?
The main objectives of the Volkswagen-Rivian joint venture are to develop platforms for software-defined vehicles and adopt Rivian's zone-based approach to EVs, which simplifies wiring and electronics. This partnership aims to bring Rivian's software and technology to a broader market through Volkswagen Group's global reach, while also providing Volkswagen access to Rivian's software architecture and expertise.