Rivian Automotive (NASDAQ:RIVN)
On Monday, shares of Rivian Automotive (NASDAQ:RIVN) jumped as high as 6.4%. The novel manufacturer of electric pickup trucks and SUVs had just made a huge statement before this action. Rivian Stock had lost some of their earlier gains but was still 4.2% higher at 11:30 AM ET.
What’s the Reason?
Following Ford and GM’s footsteps, Rivian has formed a partnership with Tesla to provide its customers with access to the latter’s network of Superchargers throughout North America. While Rivian Stock has been slowly expanding its own charging station network for its vehicles, this agreement will allow Rivian owners to rapidly install over 12,000 fast chargers starting in 2019.
Starting in 2020, Rivian will make NACS charging ports standard on Rivian cars, following Tesla’s lead with the North American Charging Standard (NACS). NACS will also be used in Rivian’s next-gen R2 vehicle platform.
What’s Next?
Rivian may believe NACS adoption is imminent, but the move is also intended to increase sales. By the end of last year, Rivian had received enough (cancelable) preorders to keep its factory running smoothly beyond 2024. Recent indicators point to a decline in demand.
The firm currently boasts on its website that the delivery time for a brand-new Quad-Motor R1T pickup truck is just 14 days. That means there’s a lot of stock available of that finish option. Barron’s also stated that Rivian had a one-day sale at its Illinois facility last weekend.
Investors and buyers of Rivian vehicles should be pleased by the partnership with Tesla. Superchargers are seen by Rivian and others as a quick fix for the range concern that has kept some people from purchasing electric vehicles. However, in the next report to shareholders, Rivian’s management should also discuss the outlook for car demand. It’s a red flag that something could be wrong if it doesn’t.
Featured Image: Megapixl
