The two are also forming a software joint venture. The partnership between the young California EV maker and a global auto giant may position both to better compete with Tesla and Chinese rivals.Upstart electric vehicle maker Rivian said Volkswagen is investing up to $5 billion in the electric vehicle maker and that the two companies are forming a joint venture to develop an automotive software platform based on Rivian technology.
Rivian shares, which rose about 9% on Tuesday, jumped more than 50% to $18.49 in after-hours Nasdaq trading. “Initially, we are investing $1 billion in Rivian and are planning further investments of up to $4 billion,” CEO of Volkswagen Group Oliver Blume said in a media call. “The additional investments will take place through 2026,” assuming the partnership achieves specific technical milestones, he said, without elaborating., its biggest investor and top buyer of its electric delivery trucks — may help ensure that Rivian launches its next products, the, on time.
“Key for these types of collaborative relationships to work in our view is that there's mutual benefit to both sides,” said RJ Scaringe, Rivian’s founder and CEO.
Volkswagen’s initial $1 billion investment is being made through a convertible note offering. An additional investment of up to $2 billion in Rivian’s stock is to take place in two portions of $1 billion each in 2025 and 2026, the companies said. Another $2 billion will come in the form of a cash payment when the new venture company begins operating and a loan in 2026.
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