Volkswagen's $5 billion investment in Rivian boosts EV maker's shares

  • 📰 Investingcom
  • ⏱ Reading Time:
  • 39 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 19%
  • Publisher: 53%

United States News News

United States United States Latest News,United States United States Headlines

Volkswagen's $5 billion investment in Rivian boosts EV maker's shares

) as part of a new, equally controlled joint venture to share EV architecture and software, the companies said on Tuesday.

It will also help Rivian, known for its flagship R1S SUVs and R1T pickups, turn cashflow positive. The company will license its existing intellectual property rights to the JV, and the R2 will be the first vehicle using software from the JV. Volkswagen vehicles, including ones by its Audi, Porsche, Lamborghini and Bentley brands, will follow.

The German automaker will also invest $2 billion in Rivian stock - $1 billion each in 2025 and 2026 - subject to the startup hitting certain milestones, and provide a $1 billion loan in 2026.

"They were definitely going to need something to get them past the launch of the R2s. This definitely helps extend that range," said Sam Fiorani, vice president at research firm AutoForecast Solutions.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 450. in US

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Volkswagen investing $5M in Illinois-based electric car company Rivian to design vehicle softwareRivian and Volkswagen Group are forming a joint venture to create vehicle software, the two companies announced Tuesday.
Source: ABC7Chicago - 🏆 284. / 63 Read more »