EV - What Caused Today's Rivian Stock Ups and Downs
Rivian Stock ( NASDAQ:RIVN )
Rivian stock ( NASDAQ:RIVN ) continued today’s tumultuous week of trading . Rivian stock briefly rose by 2% before plunging to a loss of 2.4%. At 2:15 p.m. ET, it had regained almost all of those losses, falling by just 0.5%.
What’s the Reason?
Since Monday, when Rivian stock issued a recall of virtually all of its manufacturing cars, the stock has been volatile. While the issue was limited to the steering column of around 1% of the recalled EVs, it nonetheless caused a double-digit decline (EVs).
However, investors were concerned that the EV startup’s image had been tarnished. The revelation that Lucid Group, another early-stage EV manufacturer, has also begun a recall of 571 cars explains today’s decline. That heightened concerns about the reliability of these up-and-coming EV manufacturers. Yet when Lucid recently joined Rivian in reiterating its production goal for the whole year, investors may have had second thoughts about the Rivian stock’s long-term prospects.
What’s Next?
The recall of 12,200 electric vehicles (EVs) by Rivian should quickly be forgotten by investors and have no lasting effect on the firm. And Rivian stock is laying the groundwork for future prosperity. Rivian’s electric delivery cars are popular with Amazon, and the company is also a client for the company’s pickup trucks and SUVs. According to a story by The Verge, Amazon is reportedly planning to spend about $1 billion to electrify its European fleet.
Investors may assume that Rivian may be engaged in providing Amazon in Europe due to the company’s preexisting connection with the ret...
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