Why Rivian Shares Are Still Surging Today

Shares of Rivian Automotive (NASDAQ: RIVN) were still surging on Wednesday afternoon, after the company announced the closing of a deal with that could be worth well over $5 billion to the electric vehicle (EV) maker.

As of 1:30 p.m. ET, Rivian's shares were up about 18.3% from Tuesday's closing price.

Under the deal, first outlined in June, Rivian and Volkswagen have created a joint venture to develop and commercialize Rivian's so-called "zonal" EV architecture. The zonal architecture, set to be implemented in Rivian's upcoming R2 SUV, can provide an extremely flexible technical basis for EVs of different sizes and price points. Among automakers outside of China, only Tesla has something similar.

Source Fool.com