Rivian
- Volkswagen will invest up to $5 billion in Rivian, an EV maker that's struggled with profitability.
- Rivian, which lost $1.4 billion in the first quarter, aims to develop a more affordable SUV.
- Rivian's new $45,000 SUV, the R2, set to launch in 2026, targets mainstream customers.
Volkswagen just inked a deal to invest up to $5 billion in Rivian, the electric-vehicle maker that has, like its peers, struggled to turn a profit.
The deal, announced Tuesday, creates a joint venture focused on developing software to be used in both companies' cars. It also affords Rivian, which lost $1.4 billion in the first quarter, a financial cushion to continue developing a much cheaper SUV.