Rivian shares surge after Volkswagen agrees to $5bn investment

finance
Created 6/25/2024
Updated 6/25/2024

Volkswagen has agreed to invest up to USD5 billion in Rivian, an Amazon-backed electric carmaker, to form a joint venture and share electric vehicle architecture and software. The investment will form a joint venture between the companies to share electric vehicle architecture and software. This partnership is a significant boost for Rivian, which has faced financial challenges while scaling up production. It also helps Volkswagen advance its software-defined vehicle plans. The investment will aid Rivian in developing its more affordable R2 SUVs, set for a 2026 release, securing essential capital for growth. Rivian's CEO, RJ Scaringe, and Volkswagen's CEO, Oliver Blume, both emphasized the strategic benefits of the cooperation.

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