When Volkswagen Group invested $5 billion in Rivian the startup’s shares skyrocketed following the financial infusion.
Volkswagen’s stock fell 1.6%.
Some observers applauded the formation of a Volkswagen-Rivian joint venture to assist the German company with software. However, the investment prompted cost concerns and highlighted how Volkswagen’s issues in key areas hampered its global EV transition.
The second-largest automaker in the world is dealing with a bewildering array of issues in Europe, the United States, and, most importantly, China, where domestic EV manufacturers under the leadership of BYD are eroding its market share. It has lost more stock value than any significant competitor in the last two years.
Volkswagen intends to launch more than 30 new electric or hybrid cars in China by 2030, increasing sales to almost 4 million from 3 million today and boosting its market share to 15%.
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