Rivian Automotive (NASDAQ:RIVN)
After the well-known electric vehicle (EV) manufacturer announced a new alliance on Thursday morning, shares of Rivian Automotive (NASDAQ:RIVN) shot up dramatically in price. The share price increased by nearly 10% and has maintained its gain of 6.9% as of 10:18 a.m. Eastern Time this morning.
Rivian has announced that it has signed a memorandum of understanding for a new joint venture to produce electric vehicles with the Mercedes-Benz Van division of Daimler AG. The electric delivery vans (EDVs) that Rivian is presently producing for Amazon will serve as a model for the customization process used for these new vehicles.
Customers of Mercedes-Benz and Rivian will be able to purchase the enormous electric vans that are being made in Europe. According to a joint statement released by the firms, the company will leverage an existing Mercedes-Benz site in Europe, even though the plan calls for the construction of a brand-new facility for the business.
It is anticipated that production will start “in a few years” with two distinct van models derived from the electric-only platform of Mercedes-Benz Vans and the Rivian Light Van (RLV) platform. In a statement, the head of Mercedes-Benz Vans, Mathias Geisen, said, “We are sharing investments and technology because we also share the same strategic ambition: accelerating the electrification of the van market with sustainable and superior products for our customers.” This ambition is to provide customers with environmentally friendly and superior quality vans.
The establishment of this collaboration will allow Rivian’s van company to grow. At this time, it produces its EDV for Amazon to use in its last-mile delivery operations. Rivian anticipates supplying the e-commerce behemoth with up to one hundred thousand of these vans at its manufacturing in Illinois, which is located in Illinois.
Investors in Rivian are ecstatic about the company’s recent announcement regarding its new plans for the subsequent phase of growth in its commercial product. The electric vehicle start-up receives additional legitimacy due to its partnership with Mercedes-Benz, a global leader in the automotive industry.
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