RIVN Stock Alert: Is Rivian Set to Partner with Apple?

Electric vehicle (EV) manufacturer inventory levels. Rivian (NASDAQ:RIVN) rose due to rumors it might partner with Apple (NASDAQ:AAPL).

According to reports from trade magazines, Apple recently canceled its plans to build an “Apple Car” but may still be interested in this area.

RIVN stock rose 9% overnight and is expected to open this morning at around $11 per share, taking its market cap to nearly $11 billion. Apple gained 1% overnight and is now worth about $2.8 trillion.

apple of his eye

I suggested this recently Tesla (NASDAQ:TSLA) should fire CEO Elon Musk and buy Rivian. I know that won’t happen. In the article, I referred to TSLA as a stock to sell.

But the Apple story reflects the impulse that led to my story: Rivian’s growing reputation in EV circles. It is now seen as a company that understands the business and can scale to meet its cost challenges.

Rivian’s R3 announcement turned the industry on its head. The R3 will be a midsize car at a midsize car price when it is built in 2026 or 2027. Meanwhile, Rivian faces the challenge of selling its $45,000 R2 in quantities sufficient to justify the cost of a new plant in Georgia.

An Apple tie-in would give Rivian an improved user interface and entertainment system. It would also give Rivian a second wealthy benefactor at his side Amazon (NASDAQ:AMZN). They gave the company the starting signal five years ago with an order for 100,000 electric delivery vans.

A Rivian connection would offer Apple significantly less risk than building its own car. Success could lead to the company buying Rivian, at least in the eyes of some Rivian shareholders.

RIVN Stock: What Happens Next?

It’s possible that with all this press coverage, nothing happens. But the story is still fascinating enough to put a smile on the faces of shareholders of both companies.

At the time of this writing, Dana Blankenhorn had a LONG position in AMZN and AAPL. The opinions expressed in this article are those of the author, subject to those of InvestorPlace.com Publishing Guidelines.