VW launches $5.8bn partnership with Tesla rival Rivian

Published On Nov 12, 2024, 10:20 PM

Volkswagen (VW) has announced a significant partnership with Rivian, increasing its investment in the electric vehicle maker to $5.8 billion. The collaboration aims to share technology and resources amidst a slowdown in global demand for electric vehicles and heightened competition, particularly from Chinese manufacturers. Rivian plans to launch a new affordable SUV model next year, and VW will utilize Rivian’s technology in its vehicles starting in 2027. This venture is crucial for Rivian, which is currently not profitable, providing necessary funds to support its upcoming projects.

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Stock Forecasts

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Positive

Rivian has seen a surge in its stock price following this news, indicating positive market sentiment. The joint venture will likely enhance Rivian's technological capabilities and commercial viability in a competitive landscape, suggesting potential growth in the long run.

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