Volkswagen to Invest $5 Billion in Rivian for Joint EV Venture, Stock Surges 36%

Jun 25, 2024, 08:24 PM

Volkswagen has announced a significant investment in electric vehicle maker Rivian, amounting to up to $5 billion. The German automaker will initially invest $1 billion, with plans to increase this amount to $5 billion by 2026. This investment will form part of a joint venture between the two companies aimed at developing next-generation battery-powered electric vehicles. Rivian's stock surged by 36% in after-hours trading following the announcement. The collaboration will see Rivian's software and electrical architecture integrated into Volkswagen's future EVs, providing a much-needed financial boost to the struggling startup while granting Volkswagen access to advanced EV technology. Rivian's stock rose 35% in after-hours trading.