What happened
Rivian Automotive (RIVN 6.10%) stock opened the trading week with a jump higher by as much as 6.4%. That move came after a major announcement from the upstart maker of electric pickup trucks and SUVs. As of 11:30 a.m. ET, Rivian shares had pared some of that gain, but remained higher by 4.2%.
So what
Rivian announced today that it was following Ford Motor Company and General Motors in forming an agreement for its customers to have access to Tesla's North American network of Superchargers. Rivian has been building its own small network of vehicle charging locations, but this deal will give Rivian owners the ability to quickly add more than 12,000 fast chargers beginning next year.
Rivian will initially provide adapters for its customers to charge using Tesla's North American Charging Standard (NACS) format, and will make NACS charging ports standard on Rivian vehicles starting in 2025. Rivian will also use NACS for its next-generation R2 platform of vehicles.
Image source: Rivian Automotive.
Now what
The move may be because Rivian sees the adoption of NACS becoming inevitable, but it also undoubtedly is to help spur sales. Rivian had enough (cancellable) preorders to fill its production line well into 2024, but stopped reporting that metric late last year. There have been recent signs that demand has waned.
The company now advertises on its website that buyers can get its Quad-Motor R1T pickup truck delivered in 14 days or less. That implies an abundance of inventory of that particular trim. Rivian also held a one-day sale this past weekend at its factory in Illinois, reported Barron's.
The agreement with Tesla is seemingly good news for Rivian investors and customers. Rivian and others see the Supercharger network as an immediate remedy to range anxiety among hesitant EV buyers. But Rivian management should also address how demand for its vehicles is looking in its next update for investors. If it doesn't do that, consider it a hint that there could be a problem.
