Rivian Automotive and Volkswagen Group today announced the official start of their joint venture, boosting the latter’s investment by $800 million to $5.8 billion.
Shares of the Irvine-based electric vehicle maker soared 20% to $12.68 and a $12.9 billion market cap (Nasdaq: RIVN). Volkswagen shares fell 3.2% to 81.20 euros on the German stock exchange (XETRA: VOW3).
The joint venture will be led by Wassym Bensaid of Rivian and Carsten Helbing of the Volkswagen Group.
“The partnership with Rivian is the next logical step in strengthening our global competitive and technological position,” said Oliver Blume, chief executive of the Volkswagen Group.
Rivian will supply Volkswagen vehicles with the newest technology, such as the ability to update software over the air and not be forced to visit mechanics.
Volkswagen’s cash will help Rivian scale its production and give it access to its worldwide distribution network.
