Volkswagen to Invest $5 Billion in Rivian
German Automaker Joins Forces with Electric Vehicle Maker
June 25, 2024 | Updated 5:56 pm
Volkswagen AG, the German automaker, announced on Tuesday that it will invest up to $5 billion in Rivian, the US electric vehicle maker. The investment is part of a new partnership that will see the two companies collaborate on the development and production of electric vehicles.
Rivian, which has been hailed as a potential rival to Tesla, has been struggling to ramp up production of its electric pickup truck and SUV. The Volkswagen investment will provide Rivian with a much-needed cash infusion and will help it to scale up its operations.
For Volkswagen, the investment is a strategic move that will give it access to Rivian's technology and expertise. Volkswagen has been lagging behind other automakers in the race to develop electric vehicles, and the partnership with Rivian will help it to catch up.
The first $1 billion of Volkswagen's investment will come in the form of a convertible note that will exchange into Rivian shares in December 2024. The remaining $4 billion will be invested over time, depending on Rivian's performance.
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