Rivian Stock Surged Today: Here's Why It Could Keep Soaring

Rivian Automotive (NASDAQ: RIVN) stock surged on Wednesday, rallying 11.5% in early morning trading. In a fireside chat at the Global Automotive and Mobility Tech Conference, Rivian CFO Claire McDonough provided crucial insight into the electric vehicle (EV) maker's plans, including a big update that sent the markets into a tizzy today.

Rivian reiterated its goal to turn gross-margin-positive in 2024. Aside from moves to cut costs, Rivian expects to launch its standard battery pack in its R1 vehicles -- the R1S SUV and R1T pickup truck -- and believes this move could open up a large addressable market for the company.

The bigger update, though, is Rivian's plan to introduce a new battery aside from the standard pack for its R1 vehicles. McDonough said the simpler battery pack and module structure is not only easier to manufacture, but will also eliminate "thousands of dollars of costs."

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Source Fool.com