🚨Rivian stock surges 36% after announcing $5 billion joint venture with Volkswagen 🤝

Volkswagen (ETR) has announced a significant investment plan in Rivian Automotive Inc (NASDAQ), an American EV maker, aiming to invest up to $5 billion by 2026. This partnership aims to share knowledge on EV architecture and software, boosting Rivian's shares by 36.3% in after-hours trading. Volkswagen's initial $1 billion investment will be in the form of a convertible note, converting to a direct shareholding by December 1, 2024. The companies plan to form a joint venture to develop next-generation EV architecture, with equal control. The venture's success depends on technical feasibility, further negotiations, regulatory approvals, and achieving certain milestones. If successful, Volkswagen will invest an additional $4 billion by 2026. This investment might impact Volkswagen’s 2024 financial forecast, reducing projected net cash flow from 4.5-6.5 billion EUR to 2.5-4.5 billion EUR.

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