Volkswagen Passes Amazon To Become Rivian’s Biggest Investor
Volkswagen increased its stake in Rivian to 15.9% by purchasing 62.9 million shares for $1 billion, surpassing Amazon as the largest single investor. The move follows a $5.8 billion partnership agreement aimed at developing advanced software and battery architecture for Volkswagen’s future electric vehicles, with production models expected as early as next year.
Volkswagen Group has become Rivian Automotive’s largest investor after acquiring 62.9 million shares on April 30 at $15.90 each, totaling a $1 billion investment. This boosted Volkswagen’s ownership stake to 15.9%, surpassing Amazon, which now holds 11.8% following dilution. The transaction aligns with a previously agreed $5.8 billion cooperation plan, with investments phased through 2027 based on technological milestones. The partnership focuses on Rivian’s zonal software architecture, which Volkswagen plans to integrate into its future electric vehicles. Prototypes from Volkswagen, Audi, and Scout successfully completed winter testing of the joint battery and software system, triggering the latest investment phase. If fully executed, Volkswagen’s stake could exceed 20% by 2027. Despite potential market competition between Rivian and Volkswagen’s Scout brand, the collaboration prioritizes software development. Volkswagen’s internal Cariad division has faced delays, making Rivian’s technology critical for its upcoming SSP platform, which will underpin models ranging from the ID. Every1 city car (starting at $22,000) to luxury Audi and Porsche vehicles. Amazon’s position as Rivian’s second-largest investor was diluted due to Volkswagen’s increased stake, though Amazon has not sold shares. The shift reflects Volkswagen’s strategic commitment to Rivian’s technology as a cornerstone of its electric vehicle future, with production models incorporating the new architecture expected as early as next year.
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