Shares of Rivian jumped over 15% on Wednesday after the electric vehicle maker announced a $5.8 billion investment from German automaker Volkswagen as part of their joint venture.

Volkswagen is committing up to $5.8 billion to the joint venture through 2027, starting with an initial $1 billion investment in the form of convertible notes. At launch, VW will also invest about $1.3 billion for intellectual property licenses and a 50% equity stake, with further investments tied to development milestones.

The joint venture targets Rivian’s existing electrical architecture and software technology stack, enabling the launch of Rivian’s R2 model in the first half of 2026, the companies said.