General Motors (GM) is officially moving into the electric boat space in a deal with Pure Watercraft.
Why this matters: The company has acquired a 25% stake in the electric boat company. This move reflects a broadening interest in all things EV, including boats and other vehicles, and comes as part of GM’s commitment to invest $35 billion in electric and autonomous technology through 2025. It’s also an impressive move for GM, which is already exploring ways to use its technology in other mobility industries, like rail and aerospace. (Tech Crunch)
Rivian is dropping its IPO gains
Rivian (RIVN) stock has shed most of its IPO gains and there are a few theories as to why this happened.
Why this matters: Some fingers are pointing to Ford (F) for dropping out of its deal to make an EV with the company. But not everyone is convinced that this is the reason for the drop, others believe that it’s just post-IPO volatility. Rivian fell 15% to $108.50, a little above its IPO starting price. Another reason for the Rivian drop could be Tesla, analysts believe that Tesla investors sold some of their shares to buy the next big thing – Rivian. There could be some truth to this because both companies have moved in opposite directions recently, when Tesla shares dropped, Rivian was on the rise and vice versa. Hmmm, that’s an interesting dynamic. (Barron’s)
Ericsson acquires Vonage for $6.2 billion
Why this matters: The company said that this acquisition is in line with its global expansion plans which offer existing customers an increased share of a market valued at $700 billion by 2030. Vonage has been under pressure to sell itself for a while now and so its board of directors unanimously approved this deal. Vonage shares rose 25.8% to $20.60 while Ericsson, on the other hand, fell 6.8%. (Barron’s)