Investor's Corner
How Rivian’s deal with Mercedes bolsters the EV maker’s long-term outlook
After Rivian Automotive (NASDAQ: RIVN) struck a deal with Mercedes-Benz last week for a strategic partnership and joint production effort of electric delivery vans, analysts are explaining how the move could help bolster the EV maker’s long-term outlook.
Last week, Rivian and Mercedes-Benz announced they would build all-electric delivery vans for the European market, where the EV company has yet to deliver a vehicle. In the United States, Rivian is currently offering customers the R1T pickup, but its EDV, or Electric Delivery Van, is one of the main focal points of the company’s early production.
In 2019, Rivian found itself a worthy investor and supporter in Amazon, which ordered 100,000 EDV units from the company. Deliveries began this year after extensive pilot programs yielded adequate data for a controlled launch in several cities. The EDV is an early signal of success for Rivian as it struggles to ramp production of the R1T and R1S due to parts shortages. Supply chain issues have been cited by Rivian in the past for delayed production and delivery dates.
However, the EDV’s arrival in Europe and Rivian’s partnership with Mercedes-Benz is bolstering the company’s long-term future, which has been not in doubt but definitely questioned by those with extensive knowledge of the industry. While armchair commentators have speculated that Rivian and other EV startups would not survive the early days of production, Tesla CEO Elon Musk advised the automaker to cut costs and ramp production at its first factory before expanding with new manufacturing facilities within the United States.
The EDV partnership with Mercedes gives Rivian a new bit life, according to numerous analysts. The electric van sector, while predominately controlled by Ford, is still widely up for grabs due to relatively low volumes. While the United States may have a higher concentration of these vehicles, Europe is still lacking sustainable commercial logistics solutions, and Rivian’s EDV product is suitable for the market, Dan Ives of Wedbush explained (via MarketWatch):
“We view this as a smart strategic move by Rivian to penetrate Europe while ramping production of the EDV platform to meet its long-term growth and profitability targets. We believe Rivian is primed to capture the massive influx of current and future EV demand, capitalizing on a unique global TAM from a core engineering and design perspective along with the Amazon commercial relationship has the potential to be a major EV stalwart over the next decade. Production is improving to at least hit the 25k deliveries this year and we have confidence that customer reservations continue to increase into FY23 with the stage set for a seminal year ahead.”
Ives has a $45 price target on Rivian and an ‘Outperform’ rating on the stock.
Credit: Rivian
Additionally, Ben Kallo of Baird Securities has also said the Rivian deal will help the company solve scalability with the production portion of the deal occurring at an existing Mercedes-Benz facility in Europe. Kallo also said that Rivian has a chance to “mount a challenge to Tesla’s current dominance” in the coming years as it continues to address its total scalable market through strategic partnerships like this one:
“With few details disclosed regarding the proposed partnership, the total addressable market for electric vans is still vague. Despite a lack of clarity, RIVN is set to benefit from Mercedes’ scale while lending from its strong technology position. As the world accelerates its shift to EVs, Rivian has a solid opportunity to mount a challenge to Tesla’s current dominance.”
Kallo and Biard hold a $51 price target with an ‘Outperform’ rating on the stock. At the time of writing, shares were down just 1.6 percent on the day, but have surged over 14.5 percent since the partnership was announced last week.
Disclosure: Joey Klender is not a RIVN shareholder.
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Elon Musk
SpaceX just filed for the IPO everyone was waiting for
SpaceX filed its public S-1, revealing $18.7 billion in revenue and billions in losses.
SpaceX publicly filed its S-1 registration statement with the Securities and Exchange Commission on May 20, 2026, making its financial details available to the public for the first time ahead of what could be the largest IPO in history.
An S-1 is the formal document a company must submit to the SEC before going public. It includes audited financials, risk factors, business descriptions, and how the company plans to use the money it raises. Companies are required to file one before selling shares to the public, and it must be published at least 15 days before the investor roadshow begins. SpaceX had already submitted a confidential draft to the SEC in April, which allowed regulators to review the filing privately before it went public.
The S-1 reveals that SpaceX generated $18.7 billion in consolidated revenue in 2025, driven largely by its Starlink satellite internet division, which posted $11.4 billion in revenue, growing nearly 50% year over year. Despite that growth, the company lost about $4.9 billion in 2025 and has burned through more than $37 billion since its founding.
SpaceX just forced Verizon, AT&T and T-Mobile to team up for the first time in history
A significant portion of those losses trace back to xAI, Elon Musk’s artificial intelligence company, which was recently merged into SpaceX. SpaceX directed roughly 60% of its capital spending in 2025 to its AI division, totaling around $20 billion, yet that division lost billions and grew revenue by only about 22%.
SpaceX plans to list its Class A common stock on Nasdaq under the ticker SPCX, with Goldman Sachs, Morgan Stanley, and Bank of America leading the offering. The dual-class share structure means going public will not meaningfully reduce Musk’s control, as Class B shares he holds carry 10 votes per share compared to one vote for public Class A shares.
The company is targeting a raise of around $75 billion at a valuation of roughly $1.75 trillion, which would make it the largest IPO ever. The investor roadshow is reportedly planned for June 5.
Elon Musk
Tesla ditches India after years of broken promises
Tesla has ditched its plans to build a factory in India after years of failed negotiations.
Tesla’s long-running effort to establish a manufacturing presence in India is officially over. India’s Minister of Heavy Industries H.D. Kumaraswamy confirmed on May 19, 2026 that Tesla has informed authorities it will not proceed with a manufacturing facility in the country.
Tesla first signaled serious interest in India around 2021, when it began hiring local staff and lobbying the Indian government for lower import tariffs. The ask was straightforward: reduce duties enough for Tesla to test the market with imported vehicles before committing capital to a local factory. India’s position was equally firm, with an ask of Tesla to commit to manufacturing first, then receive tariff relief. Neither side moved, and the talks quietly collapsed.
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India had offered a policy that would reduce import duties from 110% down to 15% on EVs priced above $35,000, provided companies committed at least $500 million toward local manufacturing investment within three years. Tesla declined to participate. The tariff standoff was only part of the problem. Analysts pointed to significant gaps in India’s local supply chain, inadequate industrial infrastructure, and a mismatch between Tesla’s premium pricing and the purchasing power of India’s automotive market as additional factors that made the investment difficult to justify.
First signs of an unraveling relationship came in April 2024, when Musk abruptly cancelled a planned trip to India where he was set to meet Prime Minister Modi and announce Tesla’s market entry. By July 2024, Fortune reported that Tesla executives had stopped contacting Indian government officials entirely. The government at that point understood Tesla had capital constraints and no plans to invest.
The more fundamental issue is that Tesla’s existing factories are currently operating at approximately 60% capacity, making a commitment to building new manufacturing capacity in a new market difficult to defend to investors. Tesla will continue selling imported Model Y vehicles through its existing showrooms in Mumbai, Delhi, Gurugram, and Bengaluru, but local production is no longer part of the plan.
Elon Musk
SpaceX just forced Verizon, AT&T and T-Mobile to team up for the first time in history
AT&T, T-Mobile, and Verizon just joined forces for one reason: Starlink is winning.
America’s three largest wireless carriers, AT&T, T-Mobile, and Verizon, announced on On May 14, 2026 that they had agreed in principle to form a joint venture aimed at pooling their spectrum resources to expand satellite-based direct-to-device (D2D) connectivity across the United States in what can be seen as a direct response to SpaceX’s Starlink initiative. D2D, in plain terms, is technology that lets a standard smartphone connect directly to a satellite in orbit, the same way it connects to a cell tower, with no extra hardware required.
The alliance is widely seen as a means to slow Starlink’s rapid expansion in the satellite internet and mobile markets. SpaceX’s Starlink Mobile service launched commercially in July 2025 through a partnership with T-Mobile, starting with messaging before expanding to broadband data. SpaceX secured access to valuable wireless spectrum through its $17 billion deal with EchoStar, paving the way for significantly faster satellite-to-phone speeds.
SpaceX was not shy about its reaction. SpaceX president and COO Gwynne Shotwell responded on X: “Weeeelllll, I guess Starlink Mobile is doing something right! It’s David and Goliath (X3) all over again — I’m bettin’ on David.” SpaceX’s VP of Satellite Policy David Goldman went further, flagging potential antitrust concerns and asking whether the DOJ would even allow three dominant competitors to coordinate in a market where a new rival is actively entering.
Weeeelllll, I guess @Starlink Mobile is doing something right! It’s David and Goliath (X3) all over again — I’m bettin’ on David 🙂 https://t.co/5GzS752mxL
— Gwynne Shotwell (@Gwynne_Shotwell) May 14, 2026
Financial analysts at LightShed Partners were blunt, saying the announcement showed the three carriers are “nervous,” and pointed to the timing: “You announce an agreement in principle when the point is the announcement, not the deal. The timing, weeks ahead of the SpaceX roadshow, was the point.”
As Teslarati reported, SpaceX’s next generation Starlink V2 satellites will deliver up to 100 times the data density of the current system, with custom silicon and phased array antennas enabling around 20 times the throughput of the first generation. The carriers’ JV, which has no definitive agreement, no financial structure, and no deployment timeline yet, will need to move quickly to matter.
Elon Musk’s SpaceX is targeting a Nasdaq listing as early as June 12, aiming for what would be the largest IPO in history. With Starlink now serving over 9 million subscribers across 155 countries, holding 59 carrier partnerships globally, and now powering Air Force One, the carriers’ joint venture announcement landed at exactly the wrong time to look like anything other than a defensive move.
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