Volkswagen, the German automaker, mentioned Tuesday that it will make investments as much as $5 billion in Rivian, an electrical truck maker that has struggled to show a revenue, and that the businesses would cooperate on software program for electrical autos.
Volkswagen mentioned it will initially make investments $1 billion in a brand new three way partnership and would finally improve that determine to $5 billion. The infusion represents an enormous vote of confidence in Rivian, which loses tens of hundreds of {dollars} on each automobile it sells.
The deal supplies cash to Rivian, which has struggled to ramp up manufacturing of its electrical vans 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 shares rose 30 p.c in prolonged buying and selling on Tuesday after the deal was introduced.
Automobiles utilizing the brand new software program will go on sale through the second half of the last decade, Volkswagen mentioned. The 2 firms will proceed to market their autos individually.
It is a growing story. Please test again for updates.
