Rivian Stock Is Racing Higher Thursday: What's Going On?

Rivian Automotive Inc RIVN shares are trading higher. The company on Thursday announced a deal with AT&T Inc T in which AT&T will purchase Rivian EVs for its fleet.

What Happened: Rivian said AT&T is set to buy EVs from the company as part of a pilot program focused on cutting transport emissions. AT&T expects to start adding the Rivian Commercial Van and R1 vehicles to its fleet in early 2024. AT&T will then evaluate whether the vehicles are able to improve safety, reduce costs and cut its carbon footprint. 

The deal will help AT&T reach its commitment of carbon neutrality by 2035. The company's strategy also includes optimizing routes and reducing the overall size of its fleet.

"We couldn't be happier to collaborate with AT&T as we work together to help cut emissions and protect our environment. Around a quarter of CO2 emitted in the transportation sector in the US comes from commercial vans, so it's imperative we do all we can as soon as possible to help cut emissions," said Dagan Mishoulam, VP of strategy and fleet at Rivian. 

"Our category defining vehicles offer some of the most advanced technology in the sector and are continually improved through over-the-air updates."

In addition to the pilot program deal, AT&T will become the exclusive provider of connectivity for all Rivian vehicles in the U.S. and Canada. Rivian will use AT&T connectivity to implement over-the-air software updates and consistently improve its vehicles with new features that elevate the customer experience.

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RIVN Price Action: Rivian shares were up 8.58% at $21.40 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Rivian.