Rivian (RIVN.US) stock plunged over 4.0% in premarket after the electric vehicle producer halted plans to manufacture electric vans in Europe together with Mercedes-Benz (MBG.DE). The deal was signed in September to share costs and scale up production. Rivian decided to take a more conservative approach when it comes to its cash outlays due to high interest rates and economic concerns.
“We’ve decided to pause discussions with Mercedes-Benz Vans regarding the Memorandum of Understanding we signed earlier this year for joint production of electric vans in Europe.” RJ Scaringe, chief executive officer of Rivian said in a statement. “As we evaluate growth opportunities, we pursue the best risk-adjusted returns on our capital investments. At this point in time, we believe focusing on our consumer business, as well as our existing commercial business, represent the most attractive near-term opportunities to maximize value for Rivian. We share the same goal as Mercedes-Benz Vans, to help the world transition to electric vehicles, and we look forward to exploring opportunities with them at a more appropriate time for Rivian.”
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Rivian (RIVN.US) stock price is currently testing the lower limit of the triangle formation. In case of a break lower, downward move may accelerate towards support at $19.20, where lows from May 2022 are located. Source: xStation5
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