Rivian Automotive Inc. (Nasdaq: RIVN) of Irvine said today it’s suspending its deal with Mercedes-Benz Group AG to produce electric commercial vans.
The partnership, announced in September, would have established a joint factory in Europe.
“At this point in time, we believe focusing on our consumer business, as well as our existing commercial business, represent the most attractive near-term opportunities to maximize value for Rivian,” CEO of the EV maker, R.J. Scaringe, said in a statement. “We share the same goal as Mercedes-Benz Vans, to help the world transition to electric vehicles, and we look forward to exploring opportunities with them at a more appropriate time for Rivian.”
Mercedes-Benz, however, will continue to pursue its plans for an EV commercial van factory in Poland, company officials said.
Following the announcement, shares of Rivian fell 5.1% to $25.89 apiece and a $23 billion market cap. Shares of the company are off 79% from their 52-week high last December, shortly after its IPO.