Rivian Automotive (NASDAQ: RIVN) 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.

Investors cheered the details announced with the closing of the JV yesterday. But the partnership had been previously announced, so today’s drop likely reflects that fact, as well as uncertainty about Rivian’s long-term success.

Rivian’s big deal

Investors may be wondering which day’s reaction to the deal is right — yesterday’s spike or today’s drop. The answer is likely both. When initially announced, the deal that included direct investments into Rivian from Volkswagen and the creation of the JV was valued at a total of $5 billion. Upon closing the deal yesterday, the companies said that it now would be worth $5.8 billion.

That’s obviously even better news for Rivian and a reaffirmation that Volkswagen is committing deeply to using the company’s EV technology. Thus, the sharp surge in Rivian’s stock was warranted, especially with the stock down by more than 20% in the last three months before yesterday’s jump.

But the fruits of the investment are still a little further out on the horizon, so some investors seemed to lock in gains from the stock spike. The companies say the JV will work “to create next-generation electrical architecture and vertically integrated software for electric vehicles.”

Through 2028, Volkswagen will fund 75% of the costs within the JV, with Rivian funding the balance. Each company will continue to design and develop its own vehicles within the individual businesses. It’s still a long road to profitability and success for Rivian.

The deal could be a big factor in achieving that success, though. But it will still be years before investors know if Rivian’s lower-priced, next-generation R2 vehicle platform will resonate with consumers. That helps explain why the stock didn’t continue to rally today.

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