"Tesla Killer" Surges 40% as VW Joins Forces to Dethrone Elon Musk, Fed Employee Makes New Threat

Nvidia woke up from its three-day slump and bounced back with a 7% gain on the day. This spectacular rebound gave the Nasdaq Composite (^IXIC) a nice 1.3% lift and helped the S&P 500 (^GSPC) rise about 0.4%.

Let’s see what else you missed.

In today’s issue we’re going to cover:

The Fed’s latest threat (yes, it could get worse)...

Carnivals 8% surge off of an unexpected earnings surprise…

And why Rivian’s latest move could dethrone Tesla for good…

Let’s get it on.

Here’s our heatmap.

Yesterday was rough, with Nvidia’s slide punching the tech rally in the face, making investors wonder if they should cash in their chips. But today, Nvidia pulled a fast one, climbing back up and taking some big tech buddies like Meta and Alphabet along for the ride.

So why did the Dow fall 300 points? Well, blame it on the Fed.

 
Threats from Fed Governor Michelle Bowman about possibly hiking interest rates if inflation doesn’t cool off had everyone spooked. Her parents should’ve named her Karen, based on that attitude.

In the meantime, everyone’s keeping an eye on Friday’s Personal Consumption Expenditures (PCE) index update, the Fed’s favorite inflation gauge. 

In the single stock world, Alphabet's shares rose about 2% thanks to whispers about new AI features coming soon. Carnival enjoyed an 8% surge after a stellar earnings report and a flood of advanced bookings for 2025. (I guess that means this infamous video stopped trending on X…)

On the flip side, Home Depot took a 3% hit after Pool Corp. warned about a slowdown in new pool construction and remodeling activity.

So there you have it. Nvidia's back in the game, dragging the Nasdaq up, while the Dow falls back into last place once again.

Stock.News Spikers of the Day

AgileThought, Inc.: [AGIL] [+137.35%]

Nubia Brand International Corp.: [NUBIW] [+106.35%]

“TESLA KILLER?” Rivian Surges 40% as VW Joins Forces to Dethrone Elon Musk

Rivian just pulled off a Houdini act with serious help from Volkswagen. Rivian's stock didn’t just rise; it catapulted 40% after VW announced it’s dropping a colossal $5 billion into Rivian's electric vehicle (EV) treasure chest.

Volkswagen is kicking things off with a $1 billion down payment, promising another $4 billion in the coming years. This news had Rivian’s shares partying like it’s 1999, leaving everyone at Rivian probably popping some celebratory champagne. Meanwhile, Volkswagen executives are probably debating whether to celebrate with sauerkraut or bratwurst.

So, why’s Volkswagen throwing money around? They’re teaming up with Rivian to cook up some cutting-edge EV tech and software. This partnership is set to launch Rivian’s new, more affordable R2 SUVs in 2026, along with some slick R3 crossovers.

(Source: Rivian)

It's like they're assembling the Avengers of the EV world, minus the spandex.

Rivian, which has been burning through cash faster than Elon Musk tweets, has been on a cost-cutting spree. They’ve trimmed staff, retooled their Illinois plant, and hit pause on a new factory in Georgia, moves expected to save over $2.25 billion. Still, they reported a cringe-worthy $1.45 billion loss in Q1.

But don't count them out yet. Rivian’s got about $7.86 billion in cash and short-term investments to keep the lights on and the wheels turning. With Volkswagen’s hefty investment, they’re hoping to turn things around and make their balance sheet look less like a horror movie and more like a rom-com with a happy ending.

This is proof that Rivian’s not backing down. 

They’re gearing up to challenge Tesla’s dominance, and with their shiny new R2 and R3 models, they might just give Elon a run for his Dogecoin. Maybe they’ll even throw in a feature where the car automatically tweets whenever it reaches a full charge.

Elon Musk, however, has been less than impressed. He’s been warning about Rivian’s financial struggles for some time now. In fact, he once quipped that Rivian was on a trajectory towards bankruptcy, suggesting they needed to tighten their belt and maybe even move their executives into the factory dorms.

Tesla's CEO, who knows a thing or two about production challenges, has been skeptical of Rivian’s ability to scale effectively. That said, this new partnership is a legitimate threat to his EV empire.

As Rivian pops the champagne for its new best buddy VW, the brawl with Tesla and Musk is far from a done deal. Rivian’s the scrappy upstart fueled by VW’s fat stacks, while Tesla’s the old hand, with Musk gearing up to drop his next bombshell. Will Rivian become the ultimate "Tesla Killer"? Only time will tell.

Stock.News has positions in Tesla, Meta, and Alphabet.