What happened
Showing signs of caution amid questions about the U.S. defaulting on its debt, the S&P 500 is marginally higher while the Dow Jones Industrial Average is moderately lower. Shares of electric vehicle (EV) maker Rivian Automotive (RIVN -2.21%) are accelerating higher to start the week. After the company announced news on Friday, investors are expressing their approval today. In addition, news from a legacy automaker regarding its EV plans is also contributing to the strong buying activity of Lucid Group (LCID 1.19%) and Fisker (FSRN 12.68%).
As of 12:26 p.m. ET, Rivian's stock is up 5.3%, while shares of Lucid and Fisker are up 5.6% and 5.2%, respectively.
So what
Demonstrating interest in providing superior customer service, Rivian announced on Friday that it expects to have 200 electric Rivian Service Vans (RSV) on the road by the end of 2023 as well as 100 R1Ts -- the company's electric pickup truck. The RSVs and R1Ts will provide various maintenance and repair services in addition to vehicle-to-vehicle charging and other mobile service needs. According to Grady Robbins, Rivian's Senior Program Manager for Mobile Service Operations, having the RSVs enables the company to "continue to lead with a mobile-first strategy, delivering high-quality and convenient service to [its] customers in a sustainable way."
An additional catalyst helping to power Rivian's stock -- as well as those of Fisker and Lucid -- higher today is news from Ford Motor Company. Reuters reported that during an investor presentation today, Ford announced several lithium supply agreements. One of the supply agreements is with Albemarle, a lithium producer that plans on providing 100,000 metric tons of battery-grade lithium hydroxide, enough of the critical mineral to accommodate production of about 3 million EV batteries for Ford. The supply agreement will begin in 2026 and last through 2030.
Ford's lithium supply agreement, taken in isolation, is reason enough to push other EV stocks higher, but investors are even more motivated to park EV stocks in their portfolios thanks to a White House announcement from a few days ago. On Thursday, the Biden administration announced a $51 million funding opportunity to promote adoption of EVs nationwide with the formation of a consortium to help advance development of EV charging infrastructure.
Now what
For EV-focused investors who had been standing on the side of the road wondering if now's a good time to click the buy button on Rivian's stock, there's nothing that happened today that should affect their decision. The interest in providing solid customer service is worth noting, but it's not something that truly moves the needle. Instead, investors should be acutely focused on whether the company is able to achieve its vehicle production plans.
Similarly, investors interested in hitching a ride with Fisker and Lucid shouldn't feel more any more compelled to act today than they were previously based on today's news. Investments in both Fisker and Lucid offer the potential for impressive rewards, but the risks aren't any less concerning today than were before the weekend.
