$Volkswagen AG(VLKAY)$ ‘s 5 billion dollar investment in $Rivian Automotive, Inc.(RIVN)$ ‘s news took the latter's stock price straight to the air, but apparently the secrecy between the two companies hasn't been particularly good.
During the June 25 session, a large number of RIVN's $13 and $14 doomsday CALLs expiring this week moved out of line, with more than 5,000 and 4,000 more orders, respectively.
Apparently, this front-run was "perfectly timed", coincidence?
I'm not sold on the Rivian-Volkswagen joint venture, and it's probably just a gimmick and more "hype" than anything else.
The specifics of the partnership really take advantage of the public.
Combine the complementary strengths of both companies to reduce the cost of a bike by scaling up and accelerating global innovation.
Plans to contribute electrical architecture expertise and license existing IP to the joint venture. (Whitejohn IP)
Both companies aim to launch new cars in the second half of this decade (that is, during the next 5-10 years). (Who the hell knows what the cycle will be at that point, $Tesla Motors(TSLA)$ should even fly).
The way the public invests: $5 billion in Rivian, $1 billion initially through unsecured convertible notes, and another $4 billion expected at a later stage, which is the same as saying that it's not buying equity yet, and that you can ask for a cash return directly after maturity if the share price falls.
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