2024-06-26 17:44:24 ET
Summary
- Rivian shares surged after announcing a deal with Volkswagen, potentially bringing in necessary capital.
- Volkswagen could invest up to $5 billion here, but some of that would go towards a joint venture between the two firms.
- Rivian's valuation is quite fair given expected 2026 revenues, but I can't recommend buying until we see more progress on losses and cash burn.
One of the most disappointing names in the market in recent years has been Rivian ( RIVN ). The electric vehicle maker saw shares surge to nearly $180 after going public, only to find themselves in the single digits a few months ago. After the bell on Tuesday, the company announced an agreement with automotive giant Volkswagen ("VW") ( VLKAF ) that could bring in some necessary capital and help Rivian fund its long-term growth plan....
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Rivian Soars On Volkswagen Deal, Still Just A Hold (Upgrade)