German automotive giant Volkswagen Group announced plans to invest up to $5 billion in the U.S. startup electric vehicle company Rivian Automotive, known as the &#34;Tesla rival,&#34; to jointly establish a joint venture, sharing electric vehicle architecture and software technology.In response to this news, on Tuesday, June 25th, Rivian surged more than 50% in after-hours trading on the U.S. stock market. Prior to this, Rivian had already closed up 8.63% on Tuesday, while Volkswagen's U.S. stock also closed slightly up by 0.49%.<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/4b1f063a-d21a-4f28-bde9-1042dd9e9755.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/4b1f063a-d21a-4f28-bde9-1042dd9e9755.png"/>It is reported that Volkswagen Group will initially invest $1 billion in Rivian and plans to invest an additional $4 billion, with a total transaction size of $5 billion. The investment is divided into two parts, with Volkswagen using $2 billion to establish a jointly controlled software company with Rivian. The two parties currently expect the joint venture company to be established in the fourth quarter of 2024.The joint venture company is expected to leverage Rivian's industry-leading software and electrical architecture to create a top-notch software-defined automotive technology platform, which will be used by both companies to produce their respective vehicles. Analysts point out that the two companies are expected to combine complementary advantages, reduce the cost of each vehicle, and help Volkswagen strengthen its software division to address previous quality control issues. Rivian also stated that the price of the new vehicle will be cheaper than the current starting price of $70,000.In addition to establishing a software company, Volkswagen also plans to invest $3 billion in purchasing Rivian's shares over the next few years, initially injecting $1 billion through an unsecured convertible bond to Rivian. Then, in 2025 and 2026, Volkswagen will purchase Rivian's common stock in two installments of $1 billion each

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Volkswagen AG plans to invest as much as $5 billion in Rivian, with $3 billion allocated to purchasing Rivian shares over three years and $2 billion to jointly establish a software company with Rivian

The article conveys the following key points:
1. Volkswagen Group plans to invest up to $50 billion in the American electric vehicle startup Rivian Automotive, forming a joint venture to share electric vehicle architecture and software technology.
   
2. Rivian's stock surged over 50% in after-hours trading on June 25th, following the announcement of Volkswagen's investment. Volkswagen's stock also saw a slight increase of 0.49%.
   
3. Volkswagen will initially invest $10 billion in Rivian and plans to invest an additional $40 billion, with the total transaction size expected to be $50 billion.
   
4. The investment will involve the creation of a jointly controlled software company with an initial $20 billion from Volkswagen, leveraging Rivian's leading software and electrical architecture to develop a top-tier software-defined car technology platform.
   
5. The collaboration aims to combine complementary strengths, reduce vehicle costs, strengthen Volkswagen's software division, and address quality control issues.
   
6. Rivian intends to offer new vehicles at a lower price point than its current starting price of $70,000.
   
7. Apart from establishing the software company, Volkswagen plans to invest $30 billion in purchasing Rivian's shares over the next few years, starting with a $1 billion unsecured convertible bond and two $10 billion purchases of common stock in 2025 and 2026.

"Tesla's rival" Rivian surged more than 50% after hours, Volkswagen plans to invest $5 billion