Rivian Automobile (NASDAQ:RIVN) the stock is slowing down today after having climbed almost 14% yesterday. The jump came after the company announced final terms for a joint venture (JV) with a global automaker. Volkswagen. But shares of the electric vehicle (EV) startup were down 5% today, as of 11:15 a.m. ET.

Investors applauded the details announced yesterday at the JV closing. But the partnership was previously announced, so today’s drop likely reflects that fact, as well as uncertainty about Rivian’s long-term success.

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Rivian’s big problem

Investors may be wondering which today’s reaction to the deal is correct: yesterday’s rise or today’s decline. The answer is probably both. When initially announced, the deal, which included direct investment by Volkswagen in Rivian and the creation of the JV, was valued at a total of $5 billion. In closing the deal yesterday, the companies said the value of the deal would now stand at $5.8 billion.

This is obviously better news for Rivien and a reaffirmation that Volkswagen is deeply committed to using the company’s EV technology. Thus, the sharp rise in Rivian stock was justified, especially with the stock down more than 20% in the last three months before yesterday’s jump.

But the fruits of the investment are still a little further on the horizon, so some investors have appeared to lock in gains from the stock surge. Companies say that Joint venture will work “to create next-generation electrical architecture and vertically integrated software for electric vehicles.”

Until 2028, Volkswagen will finance 75% of the joint venture’s costs, with Rivian financing the rest. Each company will continue to design and develop its own vehicles within each company. The road to profitability and success is still long for Rivian.

The deal could, however, be an important factor in achieving this success. But it will still be years before investors know whether Rivian’s lower-cost, next-generation R2 vehicle platform will resonate with consumers. This helps explain why the stock hasn’t continued to rally today.

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Howard Smith holds positions at Rivian Automotive. The Motley Fool recommends Volkswagen Ag. The Motley Fool has a disclosure policy.

Why Rivian stock fell on Thursday was originally published by The Motley Fool