Rivian Stock Surges 22.7%: Volkswagen’s $5 Billion Boost Signals Market Confidence

Rivian stock experienced a dramatic surge today, driven by a major investment announcement from Volkswagen. Here’s what investors need to know about this significant development:

Volkswagen’s Investment:
Volkswagen has announced plans to invest up to $5 billion in Rivian over the next two years[1][2]. This investment includes:

$1 billion upfront in the form of a convertible bond
$2 billion in common stock split between 2025 and 2026, subject to certain milestones
$2 billion related to a new joint venture focused on developing next-generation electrical architecture and software technology

Stock Performance:
Rivian’s stock reacted extremely positively to this news:

The stock jumped by 8% during regular trading hours on Tuesday
In after-hours trading, it soared by as much as 37%
As of 12:45 p.m. ET on Wednesday, the stock was up 22.7%[1]

Timing and Significance:
This investment comes at a crucial time for Rivian:

The company has been burning through cash, using over $4 billion of its reserves in the last year
Rivian has been retooling its production lines for its next-generation R2 vehicle platform
The capital infusion will help Rivian launch its R2 vehicles without needing additional funding[1]

Joint Venture:
The partnership includes a joint venture aimed at creating “next-generation electrical architecture and best-in-class software technology”[1]. This collaboration is expected to benefit both companies:

Volkswagen gains access to Rivian’s software expertise and EV architecture
Rivian benefits from Volkswagen’s manufacturing knowledge and financial support[2]

Market Context:
The investment is particularly significant given the current challenges in the EV market:

The EV industry has faced retreating demand in 2024
Buyers have been showing a preference for hybrid and ICE vehicles[2]

Future Outlook:
This partnership and investment are expected to:

Validate Rivian’s R&D investments in battery and electrical technologies
Provide Rivian with funds to continue developing leading EV technologies
Potentially lower the risk associated with investing in Rivian[1]

Impact on Short Sellers:
The dramatic stock price increase is likely to negatively impact short sellers who had bet against Rivian’s stock[7].

In conclusion, this substantial investment from Volkswagen represents a significant vote of confidence in Rivian’s technology and future prospects. It provides Rivian with much-needed capital and strategic support, potentially improving its competitive position in the challenging EV market. However, investors should continue to monitor Rivian’s progress in achieving profitability and meeting production targets in the coming years.

Citations:
[1] https://www.fool.com/investing/2024/06/26/rivian-stock-exploded-today-heres-what-investors-n/
[2] https://247wallst.com/investing/2024/06/25/why-rivian-stock-is-exploding-40-right-now/
[3] https://finance.yahoo.com/news/why-rivian-lucid-chargepoint-stocks-152709671.html
[4] https://www.sharewise.com/us/news_articles/Why_Rivian_Lucid_and_ChargePoint_Stocks_Exploded_Higher_on_Monday_TheMotleyFool_20240513_1727
[5] https://investorplace.com/2024/04/7-meme-stocks-to-sell-in-april-before-they-crash-burn/
[6] https://www.investors.com/news/rivian-stock-a-buy-or-a-sell-in-2024/
[7] https://oilprice.com/Finance/the-Economy/Short-Sellers-Destroyed-As-Volkswagen-Gives-Rivian-a-5-Billion-Boost.html
[8] https://www.fool.com/investing/2024/06/25/why-rivian-stock-popped-tuesday/
[9] https://www.fox16.com/news/business/ap-rivian-shares-soar-on-massive-cash-injection-from-volkswagen-starting-immediately-with-1-billion/
[10] https://finance.yahoo.com/news/why-rivian-stock-dropped-again-162126731.html
[11] https://www.marketbeat.com/stocks/NASDAQ/RIVN/news/
[12] https://www.barrons.com/articles/rivian-earnings-stock-price-c1d38b12
[13] https://finance.yahoo.com/news/rivian-stock-soars-as-volkswagen-says-it-will-invest-up-to-5-billion-in-new-joint-venture-210921047.html
[14] https://consent.yahoo.com/v2/collectConsent
[15] https://www.barrons.com/articles/rivian-stock-price-volkswagen-deal-1c41891b
[16] https://www.thestreet.com/investing/stocks/rivian-stock-soars-as-analysts-laud-game-changer-volkswagen-deal
[17] https://www.cnbc.com/2024/06/25/volkswagen-rivian-stake.html
[18] https://www.reuters.com/business/autos-transportation/volkswagen-invest-up-5-billion-rivian-part-tech-joint-venture-2024-06-25/
[19] https://abcnews.go.com/Business/wireStory/rivian-shares-soar-massive-cash-injection-volkswagen-starting-111436103
[20] https://www.cnbc.com/quotes/RIVN

ReVamped Portfolio

Due to the most recent events, I’ve reduced my portfolio to 11 stocks that pay monthly. My focus is going to at minimum be the total value per month equal to a living wage of the country, province, state, or city of which I want to live. I believe that this would allow me to at least get the option of what I would like to do for work, without having to worry about the basics.

Monthly Stock Quantity Goal
Stock	Percent as a Number	Rule of 72 (2x)	Rule of 115 (3x)	QTY Total	Stock	Price
AGNC	8.81	8	13	21	SPFF	$11.8978
GOOD	7.67	9	15	24	GAIN	$12.2700
PBA	6.99	10	16	27	MDIV	$16.2300
HNDL	6.94	10	17	27	AGNC	$17.0200
GAIN	6.92	10	17	27	GOOD	$19.7300
MAIN	6.63	11	17	28	HNDL	$24.7000
SPFF	5.81	12	20	32	SJR	$26.3900
MDIV	5.48	13	21	34	PBA	$28.8700
SJR	5.00	14	23	37	ANGL	$31.9000
ANGL	4.67	15	25	40	MAIN	$39.2600
O	4.64	16	25	40	O	$64.2200
TGIF	2.51	29	46	75	TGIF	$104.6107
Total	72.07	159	254	413	Total	$397.0985
Average	6.01	13	21	34	Average	$33.09

The table above shows what base quantity I will plan on starting each stock according to the percent as a whole number. The 72 column is the planned initial starting quantity and the 115 column is the planned bump up. Each stock I think will help to step up the dividends coming in added to interest earned and the portion of my paycheck going into the brokerage account. In addition to this, Coinbase offers some stable coins that earn “interest”, or rewards for holding them.

Crypto Quantity
Date	08-Apr-21
Amount				Amount	$917.00
Crypto	Yield Percent (#)	72 (2x)	115 (3x)	Total	% Of Account	Crypto	% AMT
Algorand (ALGO)	6.00	12	19	31	2.15%	ALGO	$19.72
Cosmos(ATOM)	5.00	14	23	37	2.58%	ATOM	$23.67
Tezos (XTZ)	4.63	16	25	40	2.79%	XTZ	$25.56
Dai (DAI)	2.00	36	58	94	6.45%	DAI	$59.17
USD Coin (USDC)	0.15	480	767	1,247	86.03%	USDC	$788.89
Totals	17.78	558	891	1449

In an attempt to copy and paste the excel sheet, I’m starting to realize it may have to be done different. If it makes sense, that would be good. If any clarity is needed, please let me know and I will be able to see if I need to go as far as starting the table from scratch to at least help with what’s being shown. I do plan on figuring out the best way to do my excel documents in the future.

Current projected 12 month dividend income with average monthly totals

Just starting this, I currently just have 2 but plan adding more in the next 3 months as I start planning to move.

As these two are just the first steps, I plan on expanding my investing portfolio as each becomes completed. Can only hope that it won’t take tooo long to build. As with all good things though, building a firm foundation helps to build the house of your dreams.

My Portfolio As Of 11 June 2020

It was a pretty crazy day today for the stock market, dropping approx. 800 pts. When I woke up this morning, the only thing I had on my mind concerning the market was what I was going to buy from my list of stocks to add to my portfolio. After making sure that the portion of my paycheck I designate to my Schwab brokerage account, I bought 21 stocks under Schwab’s fractional share program called Schwab Stock Slices. For the stocks under the program, $5 is the minimum amount that can be used to buy into a stock.

table-of-stocks-to-hold-in-schwab Download

The ticker symbols in bold are the stocks I have after today. Next week, four remain and the plan then becomes to buy 3 stocks per payday until the last payday in September.

Luckily I didn’t have more than I did or else I would be down a lot more…. 🙂

Come October, I plan on checking the quantity of stocks that I per ticker symbol and sell the ones that are over their quantity number and put towards the ones that are still under. Once all the stocks that I have are at the baseline quantity I set for them, then I plan on buying the dividend baring stocks that aren’t part of the fractional share program and start the process again.

The income derived from the dividends will be added to the paycheck portion I have set going into the account, increasing what I can put towards buying stock and therefore increasing my dividend income.

Table of last years, YTD, and estimated income. Interest gets added after it is applied to any money fluid cash not being used.

The charitable account that I have will become a place where I will put at least 5% of any money recieved once I have reached a basic quantiy of all stocks I plan on buying though I have been reconsidering to when I start recieving dividends equaling $1+.