Volkswagen (VW), the German automotive giant, has unveiled a significant investment plan of up to $5 billion in Rivian, a US-based electric vehicle (EV) manufacturer and a key competitor to Tesla. Reports Technology News

This deal establishes a joint venture, allowing VW and Rivian to share technology. This strategic collaboration comes as competition among EV manufacturers heats up and Western nations enforce tariffs on Chinese imports.

Following the announcement, Rivian’s shares soared by nearly 50%, reflecting strong market confidence in the partnership.

VW’s investment strategy includes an initial $1 billion infusion into Rivian, with an additional $4 billion slated to be invested by 2026. This substantial investment aims to strengthen Rivian, which, despite being founded in 2009, has yet to achieve a quarterly profit and reported a net loss of over $1.4 billion in the first quarter of 2024.

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