Volkswagen AG to invest 5 billion USD in Rivian Automotive

Volkswagen AG is set to invest 5 billion USD in Rivian Automotive Inc., marking a strategic move to solidify its position in the electric vehicle (EV) market. This investment aims to optimise Volkswagen’s business processes and production efficiency by leveraging Rivian’s expertise in electric vehicle technology.

Despite being regarded as the future of the automotive industry, the electric vehicle sector is facing challenges such as slowing demand. The fact that even industry leaders like Tesla are compelled to implement aggressive price cuts to attract buyers highlights the intense competition and price wars affecting the newer, loss-making entrants like Rivian and Lucid Group Inc. particularly. This landscape poses new challenges for Volkswagen as it seeks to enhance its market stance through this strategic investment.

Examining potential investment opportunities, let’s review the stock chart of Rivian Automotive Inc. (NASDAQ: RIVN) from a technical analysis perspective:

On the Daily (D1) timeframe, Rivian’s stock has broken the resistance level at 12.15 USD, with support now established at 9.85 USD. An uptrend is beginning to form. Should a downtrend initiate, a potential downside target could be 5.50 USD.

If the current uptrend continues and the stock price rebounds off the resistance level, there could be a buying opportunity with a short-term target of 19.50 USD. For those considering a medium-term investment strategy, the stock price might rise to 24.45 USD if the positive momentum persists.


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