Volkswagen Supercharges Rivian with $5 Billion Investment • Professional Pickup

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Volkswagen will invest billions in Rivian, which aims to share software and platforms with US EV startups. The German automaker announced it would invest up to $5 billion (£3.9bn), which saw Rivian's shares rise nearly 50%, while Volkswagen's stock fell amid cost concerns, according to the report. reports from Reuters.

Rivian founder and CEO Robert Scaringe told Reuters that Volkswagen's investment will enable the development of its R2 SUVs, which are scheduled to be released in early 2026 to compete with the Tesla Model Y, and its planned R3 crossovers. The joint venture will also reduce Rivian's operating costs by using shared components, including components and microchips.

The partnership will help Rivian – the manufacturer behind the well-received R1T for electric download truck – had good cash flow by licensing its intellectual property to a joint venture. Rivian will receive an immediate $1 billion (£785m) investment in a convertible note, subject to regulatory approval. Volkswagen will also invest another billion when the company is launched, which is expected to be in the last half of this year. Other investments include $1 billion in Rivian stock in 2025 and 2026, based on milestone achievements, and $1 billion in debt in 2026.

The Rivian R1T is now an investment from Volkswagen
Rivian R1T electric van

Vitaly Golomb, managing partner at Rivian's investor Mavka Capital, noted that Volkswagen's investment greatly strengthens Rivian's prospects, saying, “Any investment like this is huge. Having the support of the Volkswagen Group certainly strengthens their case towards Europe and Asia eventually.”

Electric vehicle manufacturers have faced challenges recently, led by declining demand. Startups have also been hit by high interest rates and cash shortages, while legacy manufacturers are struggling with production and software development.

Most recently, Fisker filed for bankruptcy protection, and UK electronics company Arrival went into administration earlier this year. Rivian has been cutting costs to stay afloat but has yet to post a profit.

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