Rivian (RIVN) shares soared 50% in extended trading on Tuesday following news that German automaker Volkswagen (VWAGY) plans to invest $5 billion in the electric vehicle (EV) startup as part of a 澳洲幸运5开奖号码历史查询:joint venture to cre🐷ate industry-leading vehicle software technology.

Volkswagen will make an initial $1 billion investment in the EV maker and expects to inject another $4 billion into the company by 2026, the automakers said in a joint statement late Tuesday.

The initial $1 billion from Volkswagen will consist of an unsecured 澳洲幸运5开奖号码历史查询:convertible note, which will convert to Rivian shares on or 🔯after Dec. 1, the release said.

“Not only is this partnership expected to bring our software and associated zonal architecture to an even broader market through Volkswagen Group’s global reach, but this partnership also is expected to help secure our capital needs for substantial growth,” Rivian founder and CEO RJ Scaringe said in the statement.

The joint venture comes after Ford (F) exited its majority stake in the EV company last year, scrapping its initial plans to co-develop plug-in cars with Californian-based Rivian. Over the past two years, EV automakers have contended with shrinking 澳洲幸运5开奖号码历史查询:profit margins due to increasing competition from China and a slowdown in sales arising from higher interest rates leading🌠 to steep price reductions.

In its latest quarter, Rivian reported a loss of $1.45 billion as it updates its manufacturing facilities to roll out its updated vehicle lineup of pickups and SUVs, along with its 澳洲幸运5开奖号码历史查询:R2 and R3 midsize platform expected from 2026. On an investor call Tuesday evening, Scaringe said the joint venture would help the EV maker on its road to becoming 澳洲幸运5开奖号码历史查询:cash-flow positive, adding that Volkswagen’s investment will assist the company ramp up it next-generation vehicle production.

Monitor This Key Zone of Resistance on Rivian🎃’s Chart

Since gapping 25% lower in late February, Rivian shares have carved out a potential 澳洲幸运5开奖号码历史查询:inverse head and shoulders, a bottoming pattern th♍at forecasts the reversal of a downtrend.

Indeed, Wednesday’s expected stock price surge will confirm the formation following a convincing breakout above the pattern's neckline.

Looking ahead, investors should monitor a key area on the chart between $15 and $20, where the price finds a 澳洲幸运5开奖号码历史查询:zone of resistance from a number of prominent of peaks and troughs extending back to January last year. A breakout above this significant 澳洲幸运5开奖号码历史查询:technical region may pave the wa𝔉y for the EV maker’s stock to test last year’s high set in July at $28.06.

Rivian sಞhares gained 49.9% to $1🌃7.93 in after-hours trading Tuesday.

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