Rivian Automotive Inc (NASDAQ:RIVN) shares are trading lower Monday after the company paused partnership discussions with Mercedes-Benz on electric van production in Europe.
What Happened: Rivian announced it will pause plans to produce its electric commercial vans in Europe. As a result, the company will no longer pursue its memorandum of understanding with Mercedes-Benz, which was signed in September.
“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,” said RJ Scaringe, CEO of Rivian.
Rivian designs, develops and manufactures category-defining electric vehicles and accessories and sells them directly to customers in the consumer and commercial markets. The company is backed by Amazon.com Inc (NASDAQ:AMZN) and has a contract to supply the e-commerce giant with 100,000 electric delivery vans by 2030.
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RIVN Price Action: Rivian has a 52-week high of $121.64 and a 52-week low of $19.25.
The stock was down 1.98% at $26.75 at time of publication, according to Benzinga Pro.
Photo: courtesy of Rivian.
