VW to invest up to $5bn in Tesla rival Rivian

Volkswagen (VW) announced a $5 billion investment in electric vehicle (EV) maker Rivian, creating a joint venture to share technology.

VW will initially invest $1 billion, with an additional $4 billion by 2026. Rivian's shares surged by nearly 50% following the news.

The partnership comes as competition among EV makers intensifies and Western countries impose tariffs on Chinese imports. Rivian, founded in 2009, has yet to post a profit and reported a $1.4 billion net loss in early 2024.

The deal provides VW access to Rivian's software, crucial as Chinese EV makers expand globally and face increasing tariffs from the EU and US.