Why Rivian Shares Are Still Surging Today

[Pelican Press 0]

This is the hidden content, please

• Sign In
• or
• Sign Up

Why Rivian Shares Are Still Surging Today

Shares of Rivian Automotive (NASDAQ: RIVN) were still surging on Wednesday afternoon, after the company announced the closing of a deal with Volkswagen that could be worth well over $5 billion to the

This is the hidden content, please

• Sign In
• or
• Sign Up

maker.

As of 1:30 p.m. ET, Rivian’s shares were up about 18.3% from Tuesday’s closing price.

Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. 

This is the hidden content, please

• Sign In
• or
• Sign Up

Under the deal, first outlined in June, Rivian and Volkswagen have created a ****** venture to develop and commercialize Rivian’s so-called “zonal” EV architecture. The zonal architecture, set to be implemented in Rivian’s upcoming R2 SUV, can provide an extremely flexible technical basis for EVs of different sizes and price points. Among automakers outside of China, only Tesla has something similar.

Rivian’s next model is the midsize R2, due in 2026. Image source: Rivian.

The ****** venture will develop the architecture into something that can underpin a series of upcoming new EVs from brands in the Volkswagen group. The deal provides for a series of payments from Volkswagen to Rivian as key milestones are met, plus an option for a $1 billion loan that brings the total potential value of the deal to about $5.8 billion by early 2028.

Volkswagen will receive shares of Rivian in return for most of these payments. But for Rivian shareholders, any concerns about dilution should be more than offset by the security that VW’s incoming cash will provide for the California EV maker.

Here’s the key takeaway for Rivian investors: This deal makes it more likely that Rivian will have the cash to get to sustainable scale, no matter what happens in the U.S. political arena.

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a

This is the hidden content, please

• Sign In
• or
• Sign Up

recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

This is the hidden content, please

• Sign In
• or
• Sign Up

: if you invested $1,000 when we doubled down in 2010, you’d have $23,529!*

Apple: if you invested $1,000 when we doubled down in 2008, you’d have $42,465!*

This is the hidden content, please

• Sign In
• or
• Sign Up

: if you invested $1,000 when we doubled down in 2004, you’d have $441,949!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

Story Continues

This is the hidden content, please

• Sign In
• or
• Sign Up

#Rivian #Shares #Surging #Today

This is the hidden content, please

• Sign In
• or
• Sign Up

This is the hidden content, please

• Sign In
• or
• Sign Up