Amazon-backed electric truck and SUV startup Rivian yesterday (June 25) announced a $1 billion investment from Volkswagen Group as part of a larger software development plan for future electric vehicles. The joint venture could free up a total of $5 billion for the successful but still struggling EV maker and give Volkswagen a leg up on the next generation of “software defined vehicle” (SDV) platforms, thanks to Rivian’s software stack and innovations. Rivian shares soared more than 50 percent after the announcement. Its current market cap stands at just under $15 billion.

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Volkswagen Group is one of the largest carmakers in the world (second only to Toyota by the number of cars sold annually), and analysts believe that the joint venture could benefit both automakers, especially as Rivian has struggled through what’s known as the “EV valley of death.”

Rivian has been carving out a unique niche in the EV market with its powerful and capable fully electric pickup trucks and SUVs. The company is also seen as far less toxic and polarizing than Elon Musk’s Tesla.

In March, Rivian CEO RJ Scaringe surprised investors and consumers by announcing not just one but two smaller SUVs, the R2 and R3, both of which are geared toward the........

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