Shares of Rivian Automotive Inc. experienced a significant surge on Thursday following the company's announcement of a new partnership with AT&T Inc. This partnership marks Rivian's first major move since ending its exclusivity deal with Amazon.com Inc.

Rivian's stock rose by more than 10%, reaching its highest close since October 4th. This increase also represents the largest one-day percentage growth for Rivian since July 7th.

The deal between Rivian and AT&T entails the purchase of Rivian's electric delivery vans and other electric vehicles for AT&T's fleet. The first vehicles are expected to arrive early next year. Additionally, AT&T will become the exclusive provider of connectivity for all Rivian vehicles in the United States and Canada. This includes enabling over-the-air software updates for Rivian's vehicles.

Truist analyst Jordan Levy expressed a positive outlook on this news, as it highlights the potential benefits of Rivian's dual passenger and commercial model.

In November, Rivian ended its exclusivity agreement to exclusively supply electric delivery vans to Amazon, one of its early backers.

It is worth noting that Rivian's strong stock gains on Thursday occurred alongside other positive performances in the electric vehicle and automobile sectors. Tesla Inc. saw a 5% increase in their shares, while General Motors Co. experienced a 5.5% jump.

Throughout the year, Rivian's stock has seen a 20% gain, slightly lower than the 23% advance of the S&P 500 index.

This recent partnership with AT&T positions Rivian for further success in the electric vehicle industry, showcasing its commitment to innovation and growth.

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