RIVN - Why Rivian Stock Ended the Week With a Drop
2024-06-28 15:03:58 ET
Rivian Automotive (NASDAQ: RIVN) stock shot higher after it announced a surprising new deal with global auto giant Volkswagen earlier this week. As investors digest more details of the multifaceted arrangement, some are taking quick gains from the stock's jump.
Today, Rivian shares were lower by 7.7% as of 2:45 p.m. ET. At that time, the stock was still up nearly 30% for the week. So what are investors to make of the volatility in Rivian shares?
To recap the partnership news, Volkswagen will be investing up to $5 billion in Rivian to gain a share of its software and electric vehicle (EV) technologies. That includes a $1 billion investment up front in the form of a convertible note. A $2 billion common stock investment and another $2 billion to set up an EV technology joint venture (JV) will follow, subject to certain conditions and regulatory approvals.
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Why Rivian Stock Ended the Week With a Drop