RIVN - Volkswagen Blockbuster Deal Makes Rivian A Buy (Upgrade)

2024-07-05 11:06:45 ET

Summary

• Rivian Automotive partners with Volkswagen, receiving billions in investment for a joint venture to counter Tesla and lower development costs.
• The deal with Volkswagen allows Rivian Automotive to address profitability concerns and potentially accelerate the profit timeline.
• Rivian Automotive's valuation still offers a high margin of safety with cash accounting for almost 60% of market value.

A week ago, Rivian Automotive, Inc. ( RIVN ) shocked investors positively by announcing that it was partnering with automaker Volkswagen AG ( VLKAF ) and that the German auto giant would invest billions of dollars into a joint venture with the American electric vehicle company....

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