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Rivian (RIVN) secures $5 billion investment from Volkswagen & will launch joint venture

Volkswagon will start with a $1 billion investment, with the other $4 billion coming through the joint venture to aid Rivian in bringing its next vehicles to market.

TJ Denzer

June 25, 2024 3:30 PM

Image via Rivian

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Rivian has announced an absolutely massive partnership with Volkswagen that will involve the latter investing up to $5 billion into Rivian and beginning a joint venture with the electric vehicle manufacturer. The partnership will start with a $1 billion investment and the other $4 billion will be invested through the venture over a period of time.

Rivian shared details of the investment and joint venture with Volkswagen via an official press release on Rivian’s website. According to the announcement, the investment will see up to $5 billion invested into development and shipping of Rivian’s new and future generations of vehicles, including the recently revealed R2 SUV. Rivian and Volkswagon will equally control and operate the joint venture that will see the investment of $4 billion of the total investment go into the development of technology to be utilized in products from both companies.

Rivian (RIVN) stock jumped massively on announcement of the joint venture and investment. Where the company’s stock closed at around $11.96 USD per share on the day, it has since reached around $18.70 per share in after-hours trading as of this time of writing. Rivian has been doing well enough for itself. Despite greater than expected losses in Q1 2024, the company still garnered revenue that was in line with Wall Street forecasts. It has also been working to deliver a cost-effective electric SUV model with the R2 set to ship in 2026.

Volkswagen’s investment into Rivian is sure to help in the electric vehicle maker’s plans for the R2 and other vehicles. As we watch to see the outcome of this investment, stay tuned here at Shacknews for more electric vehicle coverage.

TJ Denzer

Senior News Editor

TJ Denzer is a player and writer with a passion for games that has dominated a lifetime. He found his way to the Shacknews roster in late 2019 and has worked his way to Senior News Editor since. Between news coverage, he also aides notably in livestream projects like the indie game-focused Indie-licious, the Shacknews Stimulus Games, and the Shacknews Dump. You can reach him at tj.denzer@shacknews.com and also find him on Twitter @JohnnyChugs.