BatteryTech @BatteryTech: "Volkswagen's $5 billion investment in..."

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Volkswagen's $5 billion investment in Rivian boosts EV maker's shares. 🚘 👉 German automaker $VOW3.DE (Volkswagen AG) will invest up to $5 billion in U.S. electric-vehicle maker $RIVN (Rivian Automotive) as part of a new, equally controlled joint venture to share EV architecture and software on Tuesday Jun 25. Shares of Rivian surged about 50% in extended trade after the announcement, potentially supercharging the company's market value by nearly $6 billion, if gains hold on Wednesday. 👉 The auto industry faces a crucial time as EV startups grapple with a slowdown in demand amid high interest rates and dwindling cash, while traditional automakers struggle to build battery-powered vehicles and advanced software. 👉 The investment will provide Rivian the funding necessary to develop its less expensive and smaller R2 SUVs that are set to roll out in early 2026 and its planned R3 crossovers, CEO RJ Scaringe told Reuters. Moreover, the partnership will enable Rivian to cut operating costs by leveraging volumes of supplies including chips and components, he said. 👉 It will also help Rivian, known for its flagship R1S SUVs and R1T pickups, turn cashflow positive. The company will license its existing intellectual property to the JV, and the R2 will be the first vehicle using software from the JV. Volkswagen vehicles, including its Audi, $P911.DE (Porsche AG) , Lamborghini and Bentley brands, will follow. 👉 Volkswagen will immediately invest $1 billion in Rivian through a note that will convert to stock on Dec. 1, subject to regulatory approvals. Volkswagen will also make a $1 billion payment at the inception of the JV, expected in the fourth quarter of this year. 👉 The German automaker will also invest $2 billion in Rivian stock - $1 billion each in 2025 and 2026 - subject to the startup hitting certain milestones, and provide a $1 billion loan in 2026. Read more ❓ www.reuters.com/business/autos-transportation/volkswagen-invest-up-5-billion-rivian-part-tech-joint-venture-2024-06-25/ ✨ $RIVN is part of eToro’s @BatteryTech Smart Portfolio. It comprises companies from the whole lifecycle of batteries, a key item essential for humanity to live. It includes stocks from diversified industries, including Mining, Chemicals, Renewable Energy, Utilities, Electric Equipment, and Electric Vehicles manufacturers. @BatteryTech is a new portfolio of eToro's Smart Portfolio series, covering innovative themes and available from a $500 minimum investment. Your capital is at risk. Past performance is not an indication of future results.

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