Rivian stock is up 50%, here's why

Core Viewpoint - Rivian's stock experienced a significant rebound following a $5 billion investment from Volkswagen, which is expected to support the development of new vehicle models and improve cash flow [1][4]. Group 1: Investment Details - Volkswagen will invest $1 billion in Rivian through a convertible note, with an additional $1 billion payment at the joint venture's inception, expected in Q4 2023 [4]. - The investment includes a further $2 billion in Rivian stock, contingent on the company meeting specific milestones, with $1 billion allocated for both 2025 and 2026 [4]. - Rivian plans to use the funding to develop its R2 SUVs and R3 crossovers, aiming for a debut in early 2026 [4]. Group 2: Market Impact - Following the announcement of the investment, Rivian's market capitalization increased by $6 billion [3]. - Rivian's stock gained nearly 50% in pre-market trading after the investment news, reversing a year-to-date decline of 43% [1][3]. Group 3: Technical Analysis - Rivian's stock is currently in a declining trend channel, but recent gains suggest a potential trend reversal [5]. - The stock is testing resistance at $12, and breaking above this level could indicate a positive shift [5]. - The relative strength index (RSI) is trending upwards, signaling a potential price increase in the short to medium term [5].