Rivian Share Price Spikes After Volkwagen Raises JV Funding

Rivian share price skyrocketed on Thursday on news that German automating giant, Volkswagen (VW) had upsized its funding in the EV manufacturer. Rivian (NASDAQ: RIVN) was up by 13.2 percent in the pre-market session, trading at $11.98. Volkwagen will raise its stock and JV funding in Rivian from an initial $5 billion to $5.8 billion, signifying an upbeat outlook for the American company. The joint venture, named Volkswagen and Rivian Group Technologies Ltd will leverage Rivians prowess in EV technology [...]The post Rivian Share Price Spikes After Volkwagen Raises JV Funding appeared first in UK on InvestingCube.

Summary: Rivian share price rose by double digits on Wednesday as Volkwagen raised its investment in the EV maker, bringing the stock above key MAs. Rivian share price skyrocketed on Thursday on news that German automating giant, Volkswagen (VW) had upsized its funding in the EV manufacturer. Rivian (NASDAQ: RIVN) was up by 13.

2 percent in the pre-market session, trading at $11.98. Volkwagen will raise its stock and JV funding in Rivian from an initial $5 billion to $5.

8 billion, signifying an upbeat outlook for the American company. The joint venture, named Volkswagen and Rivian Group Technologies Ltd will leverage Rivians prowess in EV technology and deliver breakthrough electrical and software technologies in the EV industries. In addition, the JV will allow VW to use Rivian’s technologies in its models and aims to launch the Rivian R2 model by 2026 and Volkwagen models by 2027.

Rivian is yet to return a profit since it went public in 2018, and recently downgraded its production guidance for the full-year from 57,000 units to between 47,000 to 49,000 units. The company reported a negative gross margin of $392 million in the quarter ending October, translating to an average loss of $39,000 per vehicle sold. Rivian share price is down by 51 percent year-to-date, reflecting its struggles and failure to convince investors on its growth potential.

However, the uptick on Wednesday returns it above the 20 and 50 Exponential Moving Average (EMA) levels, which could help build up traction for a recovery. Rivian share price prediction The momentum on Rivian share price calls for further upside above 11.90.

With that, RIVN will likely encounter initial resistance at 12.12. However, if the buyers extend control, the price could break above that level and test 12.

27. On the other hand, moving below 11.90 will signal control by the sellers.

If that happens, initial support will likely be at 11.70. However, a stronger downward momentum could break below that level and invalidate the upside narrative.

Also, the decline could send the price lower to test 11.55..