San Francisco –
German automaker Volkswagen Group will invest up to $5 billion in U.S. electric vehicle maker Rivian as part of a new, equally controlled joint venture to share EV architecture and software, the companies said Tuesday.
Shares of Rivian rose about 50% in extended trading after the announcement, potentially boosting the company’s market value by nearly $6 billion if gains continue Wednesday.
The auto industry is facing a pivotal time as EV startups struggle with a slowdown in demand due to high interest rates and dwindling cash, while traditional automakers struggle to build battery-powered vehicles and cutting-edge software.
