The Ratings Game: Rivian’s Mercedes partnership an important international win for the EV maker, say analysts

by | Sep 12, 2022 | Stock Market

Rivian Automotive’s recently announced partnership with Mercedes-Benz Group spells good news for the electric vehicle maker, according to analysts. Last week Rivian Automotive Inc.
RIVN,
+1.82%
and Mercedes-Benz Group AG
MBG,
+3.53%

DAII,

signed a Memorandum of Understanding for a strategic partnership and joint production of electric vans. The planned joint venture will produce bespoke large electric vans for Rivian and Mercedes-Benz, the companies said.

Under the terms of the deal, a new electric-only manufacturing facility will be built using an existing Mercedes-Benz site in Central or Eastern Europe. Financial terms of the partnership have not been disclosed. See Now: Mercedes, Rivian ink joint venture to make electric vans The deal gives Rivian its first key international footprint to meet the growing global demand for EVs, according to Wedbush analyst Daniel Ives. “We view this as a smart strategic move by Rivian to penetrate Europe while ramping production of the EDV [Electric Delivery Vehicle] platform to meet its long-term growth and profitability targets,” he wrote, in a note released on Monday. Rivian describes itself as a maker of “electric adventure vehicles,” such as its R1T pickup truck and R1S SUV. Amazon.com Inc.
AMZN,
+2.66%
recently started rolling out Rivian’s electric delivery vans, giving the company’s stock a boost. Shares of Rivian, which have fallen 63.8% this year, have risen 40.1% in the last three months, compared to the S&P 500 Index’s
SPX,
+1.53%
decline of 14.7% in 2022 and 4.3% rise over the last three months. See Now: Rivian ‘finally starting to turn the corner’ says Wedbush, raisi …

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