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Volkswagen's investment in Tesla's competitor Rivian has increased to $5.8 billion.

Volkswagen Group announced on Tuesday that it plans to increase its investment in Rivian, a local auto manufacturer in the usa, by 16% to $5.8 billion, while the two companies have also launched a planned joint venture to develop electric vehicle architecture and software. Boosted by this news, Rivian's stocks rose nearly 9% after the market closed on Tuesday. The two companies stated in June that Volkswagen would invest $5 billion in Rivian, providing a lifeline for the struggling electric car startup. In the face of high borrowing costs and a slowdown in electric vehicle demand, Rivian is preparing to launch a smaller, cheaper model called R2.

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