Since reporting earnings last week, shares of Rivian (NASDAQ:RIVN) stock have tumbled, down more than 10% currently. The electric vehicle (EV) maker reported a $2.5 billion net loss during the fourth quarter as it continues to ramp up production. However, Rivian was also recently the recipient of two new, exciting developments — news which could bolster Rivian stock.
What were these two developments? And how will they affect shares?
Here’s what shareholders of RIVN stock should know about the company moving forward.
Rivian Stock: EV Maker Brings on Frank Klein as COO
What’s the first big news for Rivian stock? Well, this morning, Rivian announced that it would be bringing on Frank Klein as its Chief Operations Officer (COO). Klein will replace Rod Copes, who left the company last year. According to his LinkedIn profile, the new COO last worked as the President of Magna International’s (NYSE:MGA) Magna Steyr. And before that? Klein worked a 25-year stint at Daimler (OTCMKTS:DMLRY), focused on roles related to manufacturing and operations.
Altogether, it’s safe to say that the new COO has plenty of experience in the automotive industry. What’s more, during his time at Magna Steyr, Klein was also part of the company’s transition to the “electric mobility manufacturing space.” The COO was involved with the company’s first EV that was made by a contract manufacturer, too.
Moving forward, Klein will be based out of Normal, Illinois, where Rivian has a manufacturing plant. The plant is currently being expanded and is estimated to have an annual production capacity of 200,000 units upon completion.
RIVN Added to the CIBC Atlas Clean Energy Index
That’s not all, though. In other Rivian stock news, the Canadian Imperial Bank of Commerce (NYSE:CM) or CIBC announced it would be adding Rivian to the CIBC Atlas Clean Energy Index. EV competitor Lucid (NASDAQ:LCID) was rewarded a spot on the index as well. Specifically, Rivian, Lucid and four other energy names will be replacing Romeo Power (NYSE:RMO), Eos Energy (NASDAQ:EOSE) and Arcimoto (NASDAQ:FUV) on the list. The rebalancing will take affect after the market closes on March 18.
The CIBC Atlas Clean Energy Index is designed to “replicate, to the extent reasonably possible and before fees and expenses, the performance of a clean energy index.” The index capitalizes on clean energy through several mediums, such as solar, hydro and wind power. The index is also relatively new, created by CIBC last November.
On the date of publication, Eddie Pan did not hold (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.
