With its stock down nearly 90% since going public, investors have all but given up on RivianRIVN

— the electric truck manufacturer that’s losing $39K per vehicle. Despite delivering over 100K vehicles and receiving backing from AmazonAMZN

and FordF

, Rivian still struggles to make ends meet. Now VolkswagenVWAPY

, whose roof is also “on fire,” hopes a new partnership will provide a much-needed boost for both companies.

• This week, Volkswagen announced a significant investment of “up to $5B in Rivian” through a joint venture to leverage their combined resources.
• The news sent Rivian’s shares soaring over 19%, pushing its valuation to over $14B — its highest level in nearly four months.

Can two negatives create a positive? Both companies stand to benefit from this partnership. For Rivian, the capital and stability of its one-time competitor might be a financial saving grace — especially as it continues to lose double what it generates in revenue. And for Volkswagen, which is woefully behind the curve in EV and self-driving tech, a startup mindset might help power it into EV dominance… even if it takes some time to pay off.