Volkswagen intends to invest up to $5bn in Rivian, the two automakers will create a joint venture to develop a new electric vehicle architecture and software for future models.

The agreement will be a 50/50 joint venture, granting Volkswagen access to the Rivian software to use in their own electric vehicles.

The Volkswagen and Rivian partnership will further benefit the former with funds that could be used to further the success of the electric pick-up truck brand. VW has much to gain through the use of refined software for various purposes.

The new joint venture will create strength where it's lacking for both companies, Rivian requires additional funding and manufacturing expertise, and VW requires advanced expertise in EV technology, their shared interests equal a shared benefit.

The investments coming from Volkswagen will begin with $1bn into Rivian, and the additional $4bn will be replenished through 2026.

Volkswagen now awaits regulators' approval in securing the deal and they are not the only ones in pursuit of Rivian, it is public knowledge that Amazon has been a significant key investor of Rivian, Ford also held a significant shareholder position until they sold the majority of their stake and its now currently only 1.5%.

A Rivian and Apple partnership or complete company buyout has been long rumored, in many's opinion Rivian is the perfect company that awaits a parent company such as Apple, which possesses the funds and stability to see Rivian succeed.

VW would gain full access to use Rivian's electric architecture in their own vehicles once the deal gains approval. Rivian confirmed there has been serious work carried out to ensure the compatibility of Rivian's architecture with Volkswagen's vehicles.

Rivian CEO confirms the importance of the much-needed funding from Volkswagen, making it clear that this funding will further assist Rivian in its pursuit to bring the R2 vehicles to market at lower prices.

The Rivian stock rallied over 40% upon this news!

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I've long expressed my opinion that Rivian understands its most important and valuable assets are the company's IP and its ability to establish the company in such a competitive market space all while utalising its intellectual properties to attract investors and business partnerships, when a company understands this key principle, everything becomes possible.

VW is in desperate need of staying competitive in the Electric Vehicle market, with extremely competent cars coming out of China to Europe such as BYD and NIO, this has been sending shockwaves through legacy automakers' long dominance throughout the world but especially in Europe which is home territory for VW, Audi, Mercedes, and BMW.

This partnership will most certainly grant more benefits to VW than the general public as realises thus far.

I've made it clear that Rivian is now a technology company, without a doubt, it takes a closer look at the company's product to make this realisation that Rivian is more than an EV automaker.

They are building computers on wheels with autonomous driving being their next big step, similar to that of Tesla.

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