Although Rivian (NASDAQ: RIVN) and the electric vehicle (EV) industry as a whole experienced a decline since the beginning of 2024, the company received a significant boost on June 25. This boost caused the stock to surge by as much as 50% in pre-market trading on June 26. The rally was driven by the news that Volkswagen (ETR: VOW3), the German automaker, is investing $5 billion in RIVN. This investment aims to assist Volkswagen with its software challenges and aid Rivian in developing a more affordable electric SUV.
While the surge in Rivian’s stock price hasn’t completely offset the company’s losses for 2024, it has provided a renewed sense of optimism among analysts. One such analyst, Dan Ives from Wedbush, maintained an ‘outperform’ rating for Rivian and increased the 12-month price target from $15 to $20. Ives believes that the investment from Volkswagen is a significant win for Rivian and addresses concerns about capital. Other analysts, such as Guggenheim and Cantor Fitzgerald, have also expressed bullish sentiments towards Rivian, with price targets ranging from $18 to $23.
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