One of the biggest (and most exciting) initial public offerings (IPOs) of the year, Rivian (NASDAQ:RIVN) was in headlines even before it began trading. The electric vehicle (EV) producer — known for its innovative electric SUV and truck manufacturing — has enjoyed a good trading season. The company even received an award from the LA Auto Show in November. Now, although RIVN stock prices haven’t been as high, today brought an announcement that may help shares regain momentum.
No doubt, RIVN stock has struggled today. Despite a slight uptick this afternoon, it’s still down by more than 4% as of this writing. These gains have pushed it into the green for the past week, however. Meanwhile, AMZN stock is down 0.20% for the day and some 4% for the past five days. This shows that no company is immune to the omicron variant-driven uncertainty that has plagued markets this week. Still, for the month, Amazon shares are in the green by around 4%.
What else should investors know as these two companies prepare to join forces? Let’s find out.
What RIVN Stock Investors Should Know About the AWS Partnership
- For starters, this agreement will secure AWS’ position as the EV company’s preferred provider of cloud technology. The announcement further establishes the relationship between these two companies. Their relationship was first established when Amazon selected Rivian to produce a fleet of electric vans.
- Rivian will be using AWS tech in many areas, including analytics, containers, computation and machine learning. The technology is expected to be a fundamental tool in Rivian’s mission to innovate “the technological foundations for customers’ electric vehicle fleet management and more efficient vehicle charging.”
- In addition, Rivian seeks to implement cloud technology in streamlining its business. It will also be used to help improve battery range.
- These innovations can be found all across Rivian’s vehicles, including the electric delivery vans (EDVs) it’s building for Amazon.
- According to the statement issued this morning, the company is also working hard to meet its goals while also considering Amazon’s Climate Pledge. The pledge centers around building “cleaner and more sustainable” transportation.
- AWS technology will be used in both Rivian’s software-defined vehicle (SDV) architecture as well as “over-the-air software updates.” This will allow the company to even make improvements remotely.
- The historic market debut of RIVN was central to InvestorPlace analyst Luke Lango’s thesis that EV stocks will be able to deliver 10x returns. The AWS news is just another plus for RIVN stock.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.