Rivian shares soar on massive cash injection from Volkswagen, starting immediately with $1 billion

FILE - A Rivian sports-utility vehicle is seen on display in Austin, Texas, Feb. 22, 2023. Shares of Rivian are soaring before the opening bell on Wednesday, June 26, 2024, after Volkswagen has agreed to invest up to $5 billion in a new joint venture with the electric vehicle maker.

“Not only is this partnership expected to bring our software and associated zonal architecture to an even broader market through Volkswagen Group’s global reach, but this partnership also is expected to help secure our capital needs for substantial growth,” Rivian founder and CEO RJ Scaringe said in a prepared statement.

Vehicles using the technology produced by the joint venture, first announced late Tuesday, are expected to be launched in the second half of the decade.in 2021 as company shares spiked 53% and its market value neared $86 billion, greater than that of Ford and just below General Motors. But Rivian has yet to turn a profit, and its stock has fallen from its lofty highs of a few years ago. To conserve cash, Rivian pausedon a $5 billion electric truck plant in Georgia. Rivian said in March that there was no timetable for restarting work on the plant.

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