Rivian’s electric vehicle business shuts down and shares soar

After spending five years trying to find its way in the world, electric-truck maker Rivian announced that it was shutting down, followed by a surprisingly optimistic outlook on its future. The company sold its…

Rivian's electric vehicle business shuts down and shares soar

After spending five years trying to find its way in the world, electric-truck maker Rivian announced that it was shutting down, followed by a surprisingly optimistic outlook on its future. The company sold its assets to electrical engineering company Emerson on Wednesday, after raising $100m in an initial public offering last month. The market reacted well, as shares of shares of the company, known for its creations like the R1 EV, R1 R1 and the Electra Revo electric model, climbed from $18.95 to around $27.90 during trading Thursday. A Tesla developer, CEO Tony Posawatz created Rivian Automotive with Chris Quarles, and says that the decision to sell to Emerson was a simple one. “There was no third-party offer, and it was clear it was better for the company to be where we are today,” Posawatz told Business Insider. His company had struggled to raise money from investors. But on Thursday, he hinted at a bright future for the company. “The one thing we’ve always admired about the Emerson team is that we understand how to create value for shareholders,” he said. “And we think that’s a large part of how we’ll manage this transition. We have a couple of ideas already and are open to working with them.” Rivian will not be able to give contracts to new suppliers for two years, as is typical in the industry. That’s keeping buyers for the parts it creates on their toes, but Posawatz says they are just grateful to be done. “The company we originally planned on having a year from now closed in a week,” he said. Read more about Rivian Electric Buses and vehicles:

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