German automotive maker VW to speculate as much as $5bn in Tesla rival Rivian | EUROtoday

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Volkswagen (VW) says it can make investments as much as $5bn (£3.94bn) in US electrical car (EV) maker Rivian.

The deal creates a three way partnership that can permit the German automotive making large and the Tesla rival to share expertise.

Rivian shares jumped by round 50% after the announcement.

The tie-up comes as competitors intensifies between EV makers within the face of slowing gross sales and extra firms getting into the market.

Under the settlement, VW mentioned it can initially make investments $1bn within the electrical truck and SUV maker, with one other $4bn to be put into the corporate within the coming years.

Founded in 2009, Rivian has not but posted a quarterly revenue. In the primary three months of 2024 the corporate misplaced $1.5bn.

VW has come underneath strain from rivals like Tesla and China’s BYD because it tries to develop its share of the EV market.

https://www.bbc.com/news/articles/c1ddmxmz1lpo