Stock Market Today, June 3: Rivian Automotive Jumps on Strong R2 SUV Order Interest
Written by Howard Smith for The Motley Fool -> Rivian Automotive (NASDAQ:RIVN) , which develops and sells electric pickup trucks and SUVs, closed Wednesday at $18.27, up 5.67%. The stock advanced after reports highlighted strong R2 SUV order interest and after robust recent resu
Rivian Automotive (NASDAQ:RIVN) , which develops and sells electric pickup trucks and SUVs, closed Wednesday at $18.27, up 5.67%. The stock advanced after reports highlighted strong R2 SUV order interest and after robust recent results. Investors are closely watching R2 demand and potential technology-licensing deals next. Trading volume reached 50.3 million shares, coming in about 72% above its three-month average of 29.3 million shares. Rivian Automotive IPO'd in 2021 and has fallen 82% since going public.
The S&P 500 (SNPINDEX:^GSPC) slipped 0.74% to finish Wednesday at 7,554, while the Nasdaq Composite (NASDAQINDEX:^IXIC) fell 0.89% to close at 26,854. Among auto manufacturers, Tesla (NASDAQ:TSLA) closed at $423.70 (-0.01%) and Ford (NYSE:F) finished at $15.71 (-2.72%), underscoring Rivian Automotive's stronger session within the group.
Rivian shares have been on a tear as the start of R2 SUV sales nears. The stock has marched 23.5% higher in the lasts week as the company officially announced that June 9 will be the day order invitations begin to go out to reservation holders.
Investors appear optimistic about upcoming management insights on pricing strategies, strong demand, and early success in delivery execution. Today, Rivian sent an information video to reservation holders describing some of the R2’s unique features, including a door-mounted rechargeable torch light. Investors also learned that Rivian will expand an existing partnership with AT&T . The telecom giant’s 5G network will enable effortless software updates, improved infotainment, and continuous connectivity in Rivian's R2.
The company is also planning for potential licensing deals to integrate its core technology into other brands. That would produce a new revenue stream and potentially give analysts a reason to boost Rivian’s stock price estimates .
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