Rivian jumps as US$5-billion Volkswagen investment signals ‘vote of confidence’

) surged 40% premarket on Wednesday after a $5 billion investment from Volkswagen offered the loss-making startup more firepower to roll out new models to attract consumers in a slowing electric-vehicle market.

“It’s a big vote of confidence in the EV maker’s prospects,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown. Aptiv shares were down 5%, with Piper Sandler analysts saying the deal was a “red flag” for the company’s strategy. The company was set to add more than $4 billion to its market value of $12 billion, based on premarket movements. Its stock has lost nearly half its value this year after Rivian said in February it does not expect to produce more vehicles in 2024.

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