Rivian Stock Defies Trump’s DoE Loan-Freeze As Volkswagen JV Tech Reportedly Draws Outside Interest: Retail’s Excited
Synopsis
Additionally, Rivian aims to launch hands-free driver-assistance systems later this year and “eyes-off” systems by 2026.
Shares of Rivian Automotive Inc. rose over 3.6% Friday afternoon, trimming weekly losses a bit, as developments around its Volkswagen joint venture (JV) and advanced driver-assistance systems bolstered retail investor sentiment.
According to a Reuters report, Rivian’s JV with Volkswagen is attracting interest from multiple automakers eager to adopt its software and electrical infrastructure.
Rivian’s Chief Software Officer and JV co-CEO, Wassym Bensaid, shared that many original equipment manufacturers (OEMs) have expressed interest but declined to name specific parties or offer further details.
Additionally, Rivian aims to launch hands-free driver-assistance systems later this year and “eyes-off” systems by 2026, as revealed by CEO R.J. Scaringe in a separate interview with Reuters.
Despite the positive developments, Rivian faces potential hurdles as the Trump administration freezes all loans and spending at the Department of Energy (DoE), per a Bloomberg report.
Previously approved loans under the Biden administration include the $6.6 billion guarantee Rivian secured to support the construction of its Georgia plant.
On Stocktwits, retail traders were ‘bullish,’ focusing on Rivian’s partnerships with Volkswagen and Amazon and hoped for its entry into the S&P 500 index after fourth-quarter earnings next month.
Some users speculated the stock could more than double or triple in value.
Last week, German media outlet Spiegel reported that Volkswagen CEO Oliver Blume indicated an interest in expanding collaboration with Rivian, including potential joint ventures on modules and bundling purchasing volumes.
Rivian's stock has gained over 24% in the past three months, buoyed by improving production figures and resolving supply chain issues.
However, its year-to-date performance reflects a modest 3% decline.
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