Shares of Rivian Automotive (NASDAQ: RIVN) skyrocketed today after the company announced a new joint venture with Volkswagen AG for vehicle software, which includes a $1 billion investment in Rivian by the German automaker, with plans to invest up to $5 billion.

The injection of cash into Rivian comes as the company is cutting costs and carving out its niche in the nascent electric vehicle (EV) market. Investors were thrilled with the news of the joint venture and pushed Rivian's share price up 26.6% as of 11:56 a.m. ET on Wednesday.

The joint venture will give VW much-needed software for its vehicles in the coming years, while providing Rivian with cash that it needs right now.

Continue reading

Source Fool.com