Rivian Stock Is Racing Higher Thursday: What's Going On?
Portfolio Pulse from Adam Eckert
Rivian Automotive Inc (RIVN) shares rose after announcing a deal with AT&T Inc (T) for AT&T to purchase Rivian EVs for its fleet. The pilot program aims to reduce transport emissions, with AT&T adding Rivian Commercial Vans and R1 vehicles to its fleet in early 2024. The deal supports AT&T's goal of carbon neutrality by 2035 and includes optimizing routes and fleet size reduction. Rivian's VP of strategy and fleet, Dagan Mishoulam, highlighted the importance of reducing emissions from commercial vans. Additionally, AT&T will be the exclusive provider of connectivity for Rivian vehicles in the U.S. and Canada, enabling over-the-air software updates and feature improvements.
December 14, 2023 | 2:55 pm
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POSITIVE IMPACT
Rivian's deal with AT&T to supply EVs and provide vehicle connectivity in the U.S. and Canada is likely to boost investor confidence and could lead to increased demand for Rivian's vehicles.
The deal with AT&T is significant for Rivian as it not only involves a large order for its EVs but also establishes Rivian as a provider of connected vehicle technology. This could lead to increased sales and improved long-term prospects, positively impacting the stock price in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
AT&T's purchase of Rivian EVs aligns with its carbon neutrality goals and may enhance its corporate responsibility image. The deal also positions AT&T as the exclusive connectivity provider for Rivian vehicles in the U.S. and Canada.
AT&T's commitment to carbon neutrality is reinforced by the purchase of Rivian EVs, which may positively influence its public image and appeal to sustainability-focused investors. The exclusive connectivity deal could also open new revenue streams for AT&T, potentially having a positive short-term impact on its stock.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80