Rivian just announced a partnership with Tesla Inc

Shares of Rivian Automotive Inc (NASDAQ: RIVN) are keeping resilient even though the EV maker lost its spot on the Nasdaq 100 on Tuesday.

Why are Rivian shares up on Tuesday?

Investors are still happy because Rivian announced a new partnership with Tesla Inc (NASDAQ: TSLA) today. The said agreement will enable its customers to use the wide network of fast chargers that Tesla has laid across North America by the spring of 2024.  

Initially, they’ll have to use an adaptor but in 2025 its electric vehicles will have a built-in North American Charging Standard (NACS) port found on a Tesla. In a press release this morning, R.J. Scaring – the Chief Executive of Rivian Automotive said:

We’re excited to work with Tesla and to see collaborations like this help advance the world toward carbon neutrality. We look forward to continuing to find new ways to accelerate EV adoption.

Rivian shares are now up 30% versus their recent low.

Such collaborations mean money for Tesla

It is noteworthy here that Tesla Inc has recently signed similar agreements with Ford and General Motors Company as well. Other EV companies may follow in the coming months.

Such collaborations are developing a meaningful source of new revenue for the Austin-headquartered firm. According to Rebecca Tinucci – its Senior Director of Charging Infrastructure:

It’s great to see the industry coming together to adopt the North American charging standard. By doing so, we’re collectively ensuring all EV drivers have access to easy-to-use, reliable charging hardware.

In Europe, though, the standard for charging electric vehicles is still the “CCS” port. Tesla shares are up a whopping 150% for the year at writing.