Tesla Investor Shows Love For Battered Rivian: 4 Reasons Why He Is Positive About The EV Maker
Portfolio Pulse from Shanthi Rexaline
Rivian Automotive, Inc. (RIVN) stock dropped over 8% in a day, adding to a 25.60% loss due to poor 2024 production guidance. Tesla investor Gary Black supports Rivian as a potential number two in the EV market, citing its high-quality product and brand recognition. Black also sees Rivian's cash position as strong and hints at a possible acquisition by Amazon (AMZN). Rivian's upcoming R2 launch event is seen as a key catalyst. Future Fund Active ETF (FFND) holds shares in both Tesla and Rivian.

February 23, 2024 | 6:35 pm
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POSITIVE IMPACT
Amazon, a major Rivian electric delivery van customer, is highlighted by Gary Black as a potential acquirer of Rivian, with Rivian's enterprise value under $10 billion compared to Amazon's $1.8 trillion market cap.
The speculation of Amazon potentially acquiring Rivian could lead to positive sentiment around Amazon's stock, given its strategic implications and Amazon's strong cash position.
CONFIDENCE 70
IMPORTANCE 75
RELEVANCE 80
NEUTRAL IMPACT
Future Fund Active ETF, managed by Gary Black, holds shares in both Tesla and Rivian, indicating a vested interest in the success of these companies within the EV market.
The holdings in Tesla and Rivian by FFND reflect a strategic investment approach towards the EV market, but the short-term impact on FFND's stock is uncertain due to market volatility.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 60
NEUTRAL IMPACT
Rivian's stock dropped due to poor 2024 production guidance but received positive support from Tesla investor Gary Black, highlighting its potential and upcoming R2 launch event.
Despite the recent stock drop, Gary Black's support and the anticipation for the R2 launch event could stabilize or positively impact Rivian's stock in the short term.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100