What's Going On With Rivian Stock Wednesday?
Portfolio Pulse from Adam Eckert
Rivian Automotive Inc (NASDAQ:RIVN) shares are experiencing volatility following reports that the company has no plans to produce vehicles with Volkswagen under their recently announced joint venture. The joint venture will focus on creating next-generation software-defined vehicle platforms, with Volkswagen investing $1 billion initially and an additional $4 billion over time.
July 03, 2024 | 1:00 pm
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Rivian shares are volatile following clarification that the company will not produce vehicles with Volkswagen under their joint venture. The focus remains on software-defined vehicle platforms.
The news clarifies the scope of the joint venture between Rivian and Volkswagen, which will focus on software rather than hardware or vehicle production. This may cause short-term volatility in Rivian's stock as investors adjust their expectations. However, the long-term impact is neutral as the joint venture still represents a significant investment in Rivian's future capabilities.
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