Rivian To Receive $5 Billion Investment From Volkswagen Under JV -- Rivian Shares Up After Hours
Rivian Automotive (RIVN) will receive up to $5 billion investments from Volkswagen to create an equally-controlled joint venture on electric vehicle architecture and software technology, the companies said Tuesday.
Under the agreement, Volkswagen will initially invest $1 billion in Rivian before the year ends and up to an additional $4 billion until 2026. The initial investment will be in the form of a convertible note.
The two companies will each own 50% of the joint venture.
Rivian said Volkswagen's investments will be used together with its current cash, cash equivalents, and short-term investments to fund Rivian's operations through the ramp of R2 in Normal, Illinois, and midsize platform near Atlanta, Georgia.
Sales of Rivian surged 43% in after-hours activity following the announcement.
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