Rivian Automotive (NASDAQ:RIVN), an electric vehicle (EV) maker originally backed by Ford Motor (NYSE:F) and Amazon (NASDAQ:AMZN), confirmed it has acquired Iternio, a Swedish route planning company, as it builds its technology stack.
RIVN stock was down almost 7% on June 21. It was expected to open this morning at about $14.50, with a market capitalization of $13.7 billion.
Iternio is known for ABetterRoutePlanner, which uses data on EVs, charging stations, weather and traffic to plan trips. The software is available as a consumer app.
Lots of Rivian News
The move comes a day after Rivian agreed to use Tesla’s (NASDAQ:TSLA) plug standard in its future vehicles, making Tesla a de-facto North American standard for 480-volt charging. The company also issued upbeat guidance, maintaining its production estimates.
On the negative side, a Mizuho analyst cut his rating on the stock, and the company held a one-day sale at its factory in Normal, Illinois, indicating inventory is building up. The company is also losing its place in the Nasdaq-100. The stock price is down 46% over the last year.
Rivian plans to make 50,000 vehicles in Normal this year. The company is also shortening the delivery time on its R1T electric truck to two weeks.
Bigger news may be the rumors about Rivian’s R2 line, to be introduced next year. The R2 will be a platform for lower-cost cars and trucks, with prices for the SUV starting at $40,000, competing directly with the Tesla Model Y. Current Rivian vehicles cost over $70,000. The news was first reported at Carbuzz.
RIVN Stock: What Happens Next?
Regardless of its current difficulties, Rivian is acting like a company here for the long haul, moving ahead with its $5 billion move to Georgia. The new official car of Atlanta Mayor Andre Dickens is a Rivian R1T truck.
As of this writing, Dana Blankenhorn had a LONG position in AMZN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
