Volkswagen invests $5 billion in electric vehicle startup Rivian
VW's investment will help Rivian bridge the gap to profitability
The deal will also see VW take a 20% stake in Rivian
Volkswagen Group has agreed to invest $5 billion in electric vehicle startup Rivian in a deal that will also see VW take a 20% stake in the company. The investment is a major vote of confidence in Rivian, which is seen as one of the most promising challengers to Tesla. Rivian is expected to use the funds to ramp up production of its R1T pickup truck and R1S SUV, which are both scheduled to launch this year.
For VW, the investment is part of its broader strategy to become a leader in the electric vehicle market. VW has already invested billions of dollars in developing its own electric vehicles, and the Rivian investment will give it access to Rivian's technology and expertise. VW is also expected to help Rivian expand its global reach.
The deal is a major coup for Rivian, which has been raising funds aggressively to support its growth plans. Rivian has already raised more than $10 billion from investors, including Amazon and BlackRock. The company is expected to go public later this year, and the VW investment is likely to boost its valuation.
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