In this article RIVN Follow your favorite stocks CREATE FREE ACCOUNT Workers assemble second-generation R1 vehicles at electric automaker Rivian's manufacturing facility in Normal, Illinois, on June 21, 2024. Joel Angel Juarez | Reuters Volkswagen plans to invest up to $5 billion in electric vehicle startup Rivian , starting with an initial investment of $1 billion. The additional $4 billion is expected by 2026.
It includes plans for $1 billion each in 2025 and 2026, followed by $2 billion in 2026 related to an expected joint venture to create electrical architecture and software technology, according to a release by the automakers Tuesday. Shares of Rivian soared roughly 40% during after-hours trading Tuesday – two days ahead of an investor event for Rivian, which has been under pressure from Wall Street due to its cash burn and significant losses. Rivian stock closed Tuesday at $11.
96 a share, down by roughly 49% in 2024. The initial $1 billion from VW will be in the form of a convertible note, which could be converted to Rivian shares on or after December 1, the release said. Rivian will host an investor call to discuss the tie-up at 6 p.
m. ET Tuesday. Volkswagen is now the second legacy automaker to take a stake in the California-based company.
Ford Motor was among Rivian's largest stakeholders, at roughly 12%, alongside Amazon when Rivian went public in 2021. The Detroit automaker sold a majority of its Rivian shares by 2023 after walking back a plan to codevelop EVs w.