Rivian Automotive ( RIVN -14.30%) stock is hitting the brakes today after it spiked nearly 14% yesterday. That jump came after the company announced final terms for a joint venture (JV) with global automaker Volkswagen. But shares of the electric vehicle (EV) start-up were down by 5% today, as of 11:15 a.m. ET.

Why Rivian Stock Is On Fire Today was originally published by The Motley Fool

Shares of Rivian Automotive (NASDAQ: RIVN) were still surging on Wednesday afternoon, after the company announced the closing of a deal with Volkswagen that could be worth well over $5 billion to the electric vehicle (EV) maker.

Rivian (RIVN) is losing over $1B per quarter, or $30K-$40K on each truck it sells, with current volumes not enough to sustain its spend rate. Unless it acted quickly, bankruptcy could have been in the cards,