Rivian Automotive Inc. (NASDAQ: RIVN) is an electric car company that went public less than a year ago. Since then, the company’s stock has been declining. The excellent news in the sector may only promise a temporary increase in prices.
Rivian Automotive Inc. (RIVN) is best known for its R1T electric pickup truck. The provision of several compartments for additional equipment and freight plugs for domestic appliances, and plastic protection in regions that are frequently damaged when driving on country roads gives an electric car a competitive edge.
Now, the firm is focusing on growing manufacturing in the United States and establishing distribution channels. Rivian Automotive Inc. (RIVN) said last year that it plans to supply around 100,000 of its electric pickup vehicles to retailer Amazon.
This week’s short-term growth engine for Rivian Automotive Inc. (RIVN) was news of Volkswagen’s agreement to sell a minority investment in its private Electrify America charging station chain to Siemens. The latter will pay $450 million in equity through its investment arm to assist Electrify America to build its network of stations in the United States and Canada.
Siemens’ investment details showed that they would contribute to the expansion of Electrify America’s charging infrastructure to 1,800 charging stations and 10,000 fast chargers by 2026. Initially, the announcement boosted the stock prices of electric car makers, notably Rivian Automotive: the more charging stations accessible, the easier it is to use electric vehicles.
More extensive research, however, revealed that even Siemens’ efforts will not be sufficient to dramatically improve the issue with charging stations in the United States. As a result, Rivian Automotive Inc. (RIVN) stock prices fell.
A significant multidirectional movement within one session indicates that volatility in Rivian Automotive Inc. (RIVN) shares continue. Although the market is optimistic about the EV sector as a whole, some investors are skeptical about new manufacturers like Rivian Automotive’s capacity to swiftly ramp up full-scale manufacturing and satisfy demand.