RIVIAN SHARES SOAR ON MASSIVE CASH INJECTION FROM VOLKSWAGEN, STARTING IMMEDIATELY WITH $1 BILLION

Shares of Rivian soared 40% before markets opened Wednesday after Volkswagen vowed to invest $1 billion in the struggling electric vehicle maker immediately, and a potential total of up to $5 billion as part of a software development agreement.

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Rivian’s market value soared close to $86 billion shortly after it went public in 2021, but it is in dire need of funding to develop its next vehicle and it is bleeding money. Volkswagen needs help with its software, where Rivian is seen as a very strong player.

Volkswagen will initially invest $1 billion in Rivian Automotive Inc., with plans to invest up to an additional $4 billion. That $4 billion includes an additional investment of up to $2 billion in Rivian’s common stock that’s expected to include two installments of $1 billion each in 2025 and 2026. An investment of $2 billion related to the joint venture is expected to be split between a payment at the inception of the joint venture and a loan available in 2026.