Rivian makes electrifying start to the week!

FXOpen

OK, so its an interesting and on-trend pun, but in all seriousness, there is very much to be excited about for electric vehicle manufacturers at the moment.

Rivian, the American electric truck manufacturer that suddenly appeared from out of nowhere last year has been on an absolute roll this week.

Stock is up an astonishing 15.09% compared to yesterday's close, which is very interesting considering that this dramatic rise in the price of Rivian stock happened on the very same day that Rivian's talks with Samsung SDI about a battery joint venture concluded with no deal as Samsung SDI considered Rivian's terms for the deal to be unacceptable.

Currently, Samsung SDI supplies Rivian with 2170-type cylindrical cells, so there is an existing business arrangement, but it is purely a supplier / customer agreement and not an actual joint venture.

Perhaps investors are more excited that Rivian, an ultra-modern electric vehicle firm with an up-to-the-minute ethos, is interest in going into battery cell production at a time during which electric vehicle mania is sweeping the world and the race between technology firms and car manufacturers to be able to extend the range offered by lithium batteries is very hot indeed.

Rivian is clearly very confident in its commercial approach toward battery production, as some of the terms that dissuaded Samsung SDI from proceeding with the proposed joint venture was that Rivian had reportedly wanted to stipulate a transfer of the battery making technology to Rivian, rights to inspect the interior of factories, and no definite contract on the battery volume.

Whether Rivian took that hard line stance because it knows the value of the future potential of battery innovation for electric cars, or whether it wants to partner with an existing expert and then internalise the tech and brand it during Rivian's aggressive move into a new market that it created, is a matter for debate but either of those would be positives.

You may say that Tesla disrupted this space, and then Ford capitalised on it with the new fully electric F150 which means electric power for America's most popular vehicle, but really it was Rivian that brought the electric truck concept into being as it is far more intriguing than the ill-fated Tesla effort, and is a bit different to America's old favourite F150.

Rivian had been courting the media, too. In Britain, the Rivian truck featured in Ewan MacGregor and Charley Boorman's "Long Way Up" series in which the two motorcycling movie stars made their way from southern Argentina to Los Angeles using electric Harley Davidson motorcycles, and in doing so wanted to ensure that the support trucks were fully electric as well as the motorcycles, so Rivian built them a special truck for the journey.

This type of media attention shows Rivian's determination to do what Tesla did but for the truck world.

For that reason, it is easy to see why the stock is rising so rapidly.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Forex Trading with FXOpen

Forex Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 50 markets
  • Trade with spreads from 0.0 pips
  • Take advantage of commissions from $1.50/lot
Learn more

Latest articles

Commodities

Brent Crude Oil Analysis: Bulls Hold the Line at Key Support

The XBR/USD chart reveals that Brent crude oil is trading near its lowest levels of the year.

Several factors are pressuring oil prices:
→ China's uncertain demand outlook: As the world's largest crude oil importer, any signs of weakening demand

Shares

Netflix (NFLX) Stock Hits Another All-Time High

The daily chart for Netflix (NFLX) shows that its price has risen by more than 10% since the start of November, setting a series of new all-time highs. Today, Netflix's stock price is trading above $830.

The bullish momentum is

Shares

Alibaba (BABA) Shares Drop Ahead of Earnings Report

Tomorrow, on 15 November, Alibaba (BABA) will release its third-quarter 2024 earnings report. Analysts forecast a drop in earnings per share to $2.11 from $2.26 in the previous quarter.

Ahead of the report, Alibaba's share price has shown

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.