Rivian Secures Major Investment from Volkswagen
Shares of the electric vehicle startup Rivian, headquartered in Irvine, California, surged more than 40% in pre-market trading on Wednesday. This surge came after the announcement of a partnership between Rivian and Volkswagen to develop the “next-generation software-defined vehicle (SDV) architecture.”
According to the agreement, Volkswagen will invest $5 billion in Rivian in exchange for the use of its platform and intellectual property for future electric vehicles. The joint venture will leverage Rivian’s advanced electric vehicle architecture technology.
“This strategic collaboration will enable both companies to expand their capabilities in the electric vehicle space.”
The initial $1 billion investment from Volkswagen will be made through unsecured convertible notes, which will later be converted into Rivian shares. Additional investments of up to $4 billion will be made by 2026, totaling $5 billion.
This partnership is a significant development for both companies, as they seek to strengthen their positions in the rapidly growing electric vehicle market.
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