Volkswagen announces up to $5 billion investment in Rivian

Now headquartered in Irvine, California, Rivian Automotive, Inc. was founded in 2009, and although it currently produces the R1T pickup, the R1S SUV, as well as the EDV delivery van, the production volume remains low. However, the output went up from 24,337 vehicles in 2022 to no less than 57,232 units in 2023. The official figures for last year, unfortunately, include a net income of -$5.4 billion alongside an operating income of -$5.7 billion. Now, Volkswagen is coming to boost Rivian with a deal that could bring in up to $5 billion by the end of 2026.

The agreement signed by the two companies led to a 49% value boost in Rivian shares in after-hours trading. This 50-50 partnership consists of creating a joint venture that will focus on software development for EVs, an area where Volkswagen hasn't been doing great. Since Volkswagen will bring in the much-needed cash inflow that Rivian needs, the latter is expected to share its expertise and also license various existing technologies to its new partner.

"We have a lot of products to work on, and so we are absolutely eyes-on-the-prize focused on the products within Rivian’s portfolio, within Volkswagen Group’s portfolio, and I’d say [we] couldn’t be more excited about what’s to come." Rivian founder and CEO RJ Scaringe said in a recent conference call. Volkswagen is expected to invest $1 billion in the first round, which is scheduled for the final quarter of 2024. The German behemoth will buy $1 billion worth of Rivian common stock in 2025 and 2026, and the aforementioned joint venture will receive $2 billion split in two payments, of which the first will be the initial investment and the other will come in 2026 as a loan.

Those who already got their Rivian R1T or R1S might need the Dual Phone Charging Pad with Dark Ash Wood Skin that's compatible with MagSafe iPhone 14 and iPhone 15 and currently goes for $114.95 on Amazon.

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