Rivian’s market value soared close to $86 billion shortly after it went public in 2021, but it is in dire need of funding to develop its next vehicle and it is bleeding money. Volkswagen needs help with its software, where Rivian is seen as a very strong player.
Volkswagen will initially invest $1 billion in Rivian Automotive Inc., with plans to invest up to an additional $4 billion. That $4 billion includes an additional investment of up to $2 billion in Rivian’s common stock that’s expected to include two installments of $1 billion each in 2025 and 2026. An investment of $2 billion related to the joint venture is expected to be split between a payment at the inception of the joint venture and a loan available in 2026.
“Not only is this partnership expected to bring our software and associated zonal architecture to an even broader market through Volkswagen Group’s global reach, but this partnership also is expected to help secure our capital needs for substantial growth,” Rivian founder and CEO RJ Scaringe said in a prepared statement.
Both companies expect to lower their costs per vehicle produced while ramping up scale.
This story is from the June 29, 2024 edition of Techlife News.
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This story is from the June 29, 2024 edition of Techlife News.
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