Breaking News: Bundeskartellamt Approves Volkswagen-Rivian Joint Venture – What This Means for RIVN Stock
In a groundbreaking move, the German competition authority Bundeskartellamt has given the green light for Rivian (NASDAQ:RIVN) and Volkswagen (OTCMKTS:VWAGY) to form a joint venture, with Volkswagen investing $1 billion into the electric vehicle company. This approval comes after Volkswagen announced plans to invest up to $5 billion in Rivian, with the JV set to begin operations in the fourth quarter.
The JV will see Rivian and Volkswagen each owning an equal stake, focusing on creating vehicles separately in the second half of the decade. This partnership not only provides a major source of funding for Rivian but also sets the stage for future software-defined vehicle development.
While there won’t be a joint production plan between the two companies, Rivian’s partnership with Amazon, which aims to have 100,000 electric delivery vans on the road by 2030, further solidifies its position in the market. Additionally, Rivian has plans to expand into Europe, with sightings of their vehicles in Germany and the UK, signaling their European expansion in 2026.
Overall, this approval by Bundeskartellamt opens up new opportunities for Rivian, positioning them as a key player in the increasingly competitive electric vehicle market. As an investor, keeping an eye on RIVN stock and its developments with Volkswagen and Amazon could prove beneficial in the long run.
By Eddie Pan, the expert in institutional investments and insider activity, for InvestorPlace’s Today’s Market team, bringing you the latest news on popular stocks.