RIVN - Why Rivian and Lucid Stocks Dropped but Canoo Soared Today
The volatile electric vehicle (EV) sector was mostly lower on Wednesday morning, but with one notable exception. Shares of Rivian Automotive (NASDAQ: RIVN) and Lucid Group (NASDAQ: LCID) both dropped as much as about 5% before paring some of those losses. As of 11:30 a.m. ET, Rivian stock was down 1.3% and Lucid was off by just 0.3%.
But early-stage start-up Canoo (NASDAQ: GOEV) was going in the other direction. Canoo shares spiked 11% and held onto a gain of 8.3% at that time. There was good reasons for both moves, too.
The drops for Rivian and Lucid were spurred by one influential EV sector analyst. Morgan Stanley analyst Adam Jonas said it was time for investors to lower exposure in the EV sector, Barron's reported today. But Jonas had mixed opinions of specific names. The analyst thinks investors should sell Lucid stock, and cut the stock's price target in half, to $5 per share.
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Why Rivian and Lucid Stocks Dropped, but Canoo Soared Today