Volkswagen to Invest Up to $5 Billion in Rivian Automotive
German automaker Volkswagen Group to invest in US electric vehicle manufacturer Rivian Automotive.
Investment part of a new partnership between the two companies as automakers large and small rethink their strategies in light of the growing shift to electric vehicles.
Volkswagen plans to take an initial $1 billion equity stake in Rivian through an unsecured convertible note that will exchange into Rivian shares in December 2024. The remaining $4 billion will be invested over time, subject to certain conditions being met.
The investment is a major win for Rivian, which is still in the early stages of ramping up production of its electric vehicles. The company has received a lot of attention for its R1T pickup truck and R1S SUV, which are both seen as potential game-changers in the electric vehicle market. Volkswagen, on the other hand, is one of the world's largest automakers and is well-positioned to help Rivian scale up its production and distribution.
The partnership between Volkswagen and Rivian is a sign of the growing shift to electric vehicles. Automakers large and small are investing heavily in electric vehicle technology, and they are looking for partners to help them develop and produce these vehicles. Volkswagen's investment in Rivian is a major vote of confidence in the company and its electric vehicles.
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