Michael Buschbacher, Partner at Boyden Gray PLLC, discusses concerns about electric vehicle mandates on “The Bottom Line.”
- Rivian stock soared more than 15% on Wednesday after the electric car maker announced a $5.8 billion investment from German automaker Volkswagen as part of a joint venture.
- After Trump was elected president for a second time, Rivian and other electric car makers' stocks fell, with Tesla being the only outlier.
- Rivian's stock price has fallen nearly 55% this year, underperforming its competitors. If profits are maintained, the company is expected to add more than $1.6 billion to its current market value of $10.8 billion.
Rivian stock soared more than 15% on Wednesday after the electric car maker announced a $5.8 billion investment from German automaker Volkswagen as part of a joint venture.
This investment promotion comes at a critical time for Rivian, as it aims to reduce costs, achieve profitability, and attract budget-conscious consumers with the launch of its smaller, more affordable R2 SUV. is being carried out.
The joint venture between Rivian and VW Group Technology LLC will integrate advanced electrical infrastructure and Rivian's software technology for both companies' future electric vehicles.
Tesla stock soars after Trump's election
Susannah Streeter, Head of Money and Markets, said: “This (investment) is a significant investment in EVs as support for EVs faces a more uncertain future in the US given Trump's return to the White House. “It's a vote of confidence in the manufacturer's outlook.” Hargreaves Lansdowne.
“Tesla's Elon Musk has been given a seat at President Trump's top table,” Streeter added. EV rivals like Rivian This will put them at a disadvantage in future policy decisions.
Workers assemble second-generation R1 vehicles at electric vehicle manufacturer Rivian's manufacturing facility in Normal, Illinois, June 21, 2024. (Reuters/Joel Angel Juarez/File Photo/Reuters)
After President Trump declared victory last week, Rivian and other electric car makers' stocks fell, with Tesla being the only outlier.
Last week, Rivian missed third-quarter revenue expectations. The Amazon-backed company has been plagued by parts shortages, which led it to cut its annual production forecast in October.
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Garrett Nelson, senior equity analyst at CFRA Research, said Rivian still faces difficult challenges including a lack of scale, increased competition, high costs of capital and the “anticipated repeal” of the EV tax credit. said.
Analysts at Canaccord Genuity said in a note that the joint venture will help alleviate “a significant portion of the capital concerns” and that the Rivian-Volkswagen joint venture will remain separate from Tesla in the Western world. He said there is a high possibility that it will be established as the platform of choice.
Rivian's stock price has fallen nearly 55% this year, underperforming its competitors. If profits are maintained, the company is expected to add more than $1.6 billion to its current market value of $10.8 billion.
