Why Rivian Stock Surged Today

Rivian (NASDAQ: RIVN) stock posted big gains in Tuesday's trading thanks to a pair of bullish catalysts. The electric vehicle (EV) company's shares ended the day up 6.4% amid the backdrop of a 0.3% gain for the S 500 and a 0.8% gain for the Nasdaq Composite.

Rivian's valuation moved higher today following news that the company is spinning off Also -- its EV micromobility business. The stock also got a boost from recent analysis that Rivian could benefit from recent controversies surrounding and its CEO Elon Musk.

Rivian announced today that it has spun off its micromobility unit focusing on electric bikes, scooters, and other small vehicles into a separate business known as Also. The business is focused on electrified personal transportation, and Rivian will remain a substantial minority stake in the new entity and anticipates that there will be future collaboration between the two companies. By spinning off Also, Rivian has raised new capital that will help it expand its core EV business.

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Source Fool.com