Unusual Options Activity Supports Rivian (RIVN) But Infrastructure is Key

Amid the immediate fireworks, it’s difficult to not at least consider a bullish position in electric vehicle manufacturer Rivian Automotive (RIVN). Yes, the underlying market has struggled amid significant consumer headwinds. However, a major deal with German automotive giant Volkswagen (VWAGY) appears to have changed the paradigm for RIVN stock.

As Reuters explained, Volkswagen will provide as much as $5 billion of funding to Rivian, with the two enterprises agreeing to a technology joint venture. Leading up to the venture, Volkswagen’s software unit attempted to develop capabilities that would rival those of Tesla (TSLA). Unfortunately, the effort failed due to delays. It also incurred losses in part to procedural friction.