Rivian Gets $5 Billion Lifeline, but Will It Regret the Cost?

By Travis Hoium – Jun 27, 2024 at 5:00AM

NASDAQ: RIVN

Rivian Automotive

Market Cap

$13B

Today's Change

(-7.26%) -$1.05

Current Price

$13.42

Price as of June 28, 2024, 4:00 p.m. ET

Rivian is getting the money it needs to expand in Georgia, but it's coming at the cost of its most valuable design differentiation.

Rivian (RIVN -7.26%) made a huge announcement on Tuesday that Volkswagen will invest up to $3 billion in the company, and the two companies will start a joint venture to share vehicle architecture. In this video, Travis Hoium breaks down the deal and why Rivian may have bought itself time, but not changed its fate long-term.

*Stock prices used were end-of-day prices of June 25, 2024. The video was published on June 26, 2024.

Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla and Volkswagen Ag. The Motley Fool recommends Mobileye Global. The Motley Fool has a disclosure policy.

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