Summary by Moomoo AI
Rivian Automotive announced a strategic partnership with Volkswagen Group on June 25, 2024, including a $5 billion total investment commitment. The deal involves a $1 billion convertible note with a 4.75% interest rate, convertible into Rivian's Class A common stock at specified prices, with conversion expected after December 1, 2024.The partnership centers on creating an equally controlled joint venture focused on next-generation electrical architecture and software technology development. The remaining $4 billion investment includes $2 billion in Rivian common stock purchases planned for 2025-2026, and $2 billion for JV-related investments.The joint venture formation is anticipated to close in Q4 2024, subject to regulatory approvals and definitive agreements. The convertible note includes provisions for early prepayment or conversion in case of change of control, with various investor protections and transfer restrictions on Rivian shares.