Volkswagen to Invest Up to $5 Billion in Rivian, Stock Soars 35% in After-Hours Trading

Jun 25, 2024, 08:09 PM

Volkswagen Group is set to invest up to $5 billion in Rivian Automotive as part of a joint venture aimed at developing next-generation electric vehicles. The initial investment of $1 billion will be directed towards the electric-pickup maker, with further investments planned to enhance software development and EV architecture. The announcement has led to a significant surge in Rivian's stock, which has risen by over 35% in after-hours (AH) trading. This partnership will leverage Rivian's software and zonal electronics platform, expanding its market reach through Volkswagen's global network. Volkswagen Group CEO Oliver Blume expressed excitement over the deal, which also includes updated forecasts for the automaker. The deal marks a substantial lifeline for Rivian, which has struggled since its IPO, and provides Volkswagen with valuable access to American EV technology.