Volkswagen, the German automaker, stated on Tuesday that it might make investments as much as $5 billion in Rivian, a maker of electrical vehicles that has struggled to show a revenue, and that the businesses would cooperate on software program for electrical autos.
Volkswagen stated it might initially make investments $1 billion in a brand new three way partnership, and over time improve that to as a lot as $5 billion. The infusion represents an enormous vote of confidence in Rivian, which loses tens of hundreds of {dollars} on every automobile it sells.
The deal supplies money to Rivian, which has struggled to ramp up manufacturing of its electrical pickups and sport utility autos. The deal may additionally assist Volkswagen, which has struggled to develop software program for its electrical autos and compete with Tesla, by giving it entry to Rivian’s software program experience.
Rivian’s inventory jumped 30 % in prolonged buying and selling on Tuesday after the deal was introduced.
Autos utilizing the brand new software program will go on sale in the course of the second half of the last decade, Volkswagen stated. The 2 corporations will proceed to market their autos individually.
This can be a creating story. Examine again for updates.
