On Thursday, experts reported that Rivian Automotive will benefit from a significant battery materials price decline.
Its stock price rose by 0.69% to $23.42 per share on September 07. Likewise, it is expected to go up by 0.13% to $23.45 apiece in the upcoming session.
Prudential PLC increased its position in Rivian by 102.50% in the first quarter. Its holdings equated to $549,000.00 at the recent reporting period’s close.
In recent years, raw material costs for batteries spiked to record highs amid rapid demand growth for electric vehicles (EVs). Also, tight supplies from the pandemic inflamed by the Russia-Ukraine conflict boosted prices.
According to researchers, narrowing demand for EVs encouraged the price decline of batteries. Another drop is anticipated to take place in the year.
Rivian Finance Chief Claire McDonough said the fourth quarter would feel the impact of decreasing commodity costs. Moreover, more affordable battery raw materials could improve margins for the EV maker and its competitors.
Furthermore, the company is enhancing the production of its in-house drive unit, lower costs and improve production. It is expected to decrease dependence on third-party suppliers.
Positive factors like solid demand, higher production, and profitability strategies separated Rivian from other struggling EV makers.
Chicago Showroom Opened by Rivian
The Illinois-based EV maker, Rivian, will open its first direct-to-consumer retail space at the Gold Coast neighborhood in Chicago.
Experts said the new showroom is the company’s strategy to show itself as a significant firm in the EV market.
According to Tony Caravano of Rivian, the movement will bring a better connection to their customers. Besides, the automotive company already has an enormous assembly plant in Normal, Ill.
He added that the news space is their way to break through in the luxury multi-use vehicle industry. Also, they would offer the option of driving their R1T and R1S models.
Caravano stated their next challenge is scaling sales and broadening vehicle offerings despite monthly improvements of new software updates.
