Monday Dec 18 2023 14:28
3 min
Rivian Automotive shares surged on Thursday after an announcement that the electric vehicle (EV) manufacturer would supply its cars for AT&T Inc.’s fleet, marking its first major deal since ending its exclusivity agreement with Amazon.com.
Rivian's stock soared over 10% on the day, marking its largest one-day percentage increase since July 7. The partnership with Texas-based AT&T involves the purchase of Rivian's electric delivery vans and other EVs for the telecom firm’s fleet, with the first vehicles expected to arrive early next year.
As part of the agreement, AT&T will become the exclusive provider of connectivity for all Rivian vehicles in the U.S. and Canada. This arrangement includes facilitating Rivian's over-the-air software updates.
The EV maker in November said it had ended its exclusivity deal to provide the electric delivery vans to e-commerce giant Amazon, an early Rivian backer.
The positive momentum in Rivian's stock price on Thursday mirrored broader gains in the electric vehicle and automobile sector, with Tesla and General Motors stock both rising by 5% .
General Motors also made headlines by announcing layoffs of over 20% of its workforce at the autonomous-driving unit Cruise, following the recent departure of several executives from the driverless-car business.
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As of December 15, the majority of analysts surveyed by TipRanks offering 12-month Rivian share price forecasts were bullish on the stock. Of the 21 analysts issuing ratings on Rivian Automotive, 13 had the stock as a Buy, 7 rated it a Hold, and one analyst rated it a Sell.
Rivian's shares have seen a 20% increase year-to-date, slightly trailing the 23% advance of the S&P 500 index.
The EV maker’s competitors have had mixed results in 2023. Elon Musk-led Tesla rocketed ahead, more than doubling its share price for a 105.6% gain, while Chinese automaker Nio saw its stock fall by 18.4%, despite rallying by over 7% over the past month.
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Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.
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