Why Rivian Shares Are Nosediving Today

Shares of Tesla Inc. TSLA rival Rivian Automotive Holding Inc. RIVN were declining in premarket trading on Monday.

What Happened: The pullback comes amid news that the company has paused a partnership with Mercedes-Benz Group AG MBGAF it announced three months ago.

The two companies eyed making two commercial electric vans on common assembly lines in Europe.

See Also: Best Electric Vehicle Stocks

Rivian said the decision was in line with the best interest of shareholders and that it would focus on the consumer market and its current commercial EV delivery vans.

The news seems to be overshadowing an announcement by Nasdaq that Rivian would be added to the Nasdaq-100 Index ahead of the market opening on Dec. 19.

Price Action: In premarket trading, Rivian shares were slipping 4.10%, to $26.17, according to Benzinga Pro data.