Volkswagen is committing up to $5.8 billion to the joint venture through 2027, starting with an initial $1 billion investment in the form of convertible notes. At launch, VW will also invest about $1.3 billion for intellectual property licenses and a 50% equity stake, with further investments tied to development milestones.

Shares of Rivian jumped over 13% in premarket trading Wednesday after the electric vehicle maker announced a $5.8 billion investment from German automaker Volkswagen as part of their joint venture. The investment boost comes at a crucial time for Rivian,

Rivian Automotive’s recent joint venture (JV) announcement with Volkswagen (ETR: VOWG_p) Group marks a promising new chapter for the electric vehicle maker, acc

Shares of Rivian jumped over 15% after the EV maker announced a $5.8 billion investment from German automaker Volkswagen as part of their joint venture.

The announcement lifts the veil on one of the largest automotive deals this year, providing more details on its goals, leadership and financial structure.

Analysts see the joint venture between VW and Rivian as shoring up many concerns about the U.S. EV maker's challenges.

Volkswagen will invest up to $5.8bn into Rivian as part of a new joint venture that’ll see them both working extremely closely on their future electric cars. In short, it means Rivian can get a boatload of cash and Volkswagen’s scale to launch and evolve the R2 (pictured above) and other models.

Electric vehicle manufacturer Rivian Automotive and the Volkswagen Group are partnering up in a nearly $6 billion deal to create a new technology company.

Rivian's joint venture with Volkswagen has been made official, with a fresh investment from the German giant in the US EV startup on the way.