Why Rivian Stock Dropped Thursday
Rivian Automotive (NASDAQ: RIVN) stock is hitting the brakes today after it spiked nearly 14% yesterday. That jump came after the company announced final terms for a joint venture (JV) with global automaker . But shares of the electric vehicle (EV) start-up were down by 5% today, as of 11:15 a.m. ET.
Investors cheered the details announced with the closing of the JV yesterday. But the partnership had been previously announced, so today's drop likely reflects that fact, as well as uncertainty about Rivian's long-term success.
Investors may be wondering which day's reaction to the deal is right -- yesterday's spike or today's drop. The answer is likely both. When initially announced, the deal that included direct investments into Rivian from Volkswagen and the creation of the JV was valued at a total of $5 billion. Upon closing the deal yesterday, the companies said that it now would be worth $5.8 billion.
Source Fool.com
