Why Rivian's $5.8 Billion Deal With Volkswagen Is Exceptionally Bullish

Electric vehicle (EV) maker Rivian (NASDAQ: RIVN) said late Tuesday that it closed a hugely important deal, in which giant Volkswagen (OTC: VWAGY) will invest billions in the California-based upstart.Although the deal will dilute existing Rivian shareholders to some extent, on balance it's hugely bullish for the company. The Volkswagen deal ensures that Rivian will have ample cash to launch its smaller, higher-volume R2 and R3 models -- and opens up a potentially lucrative new market for its technology.In a nutshell, Rivian and Volkswagen have formed a joint venture that will take the technology Rivian is developing for its upcoming R2 model and adapt it for some of Volkswagen's upcoming electric vehicles. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool