What Happened?
Shares of electric vehicle manufacturer Rivian (NASDAQ:RIVN) fell 8.3% in the morning session after stocks of electric vehicle makers tumbled following reports that the new Trump Administration may eliminate subsidies for electric vehicles. There are also worries that the Trump administration might impose more restrictions on other programs, including grants and tax credits, which could weaken the adoption of electric vehicles.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Rivian? Access our full analysis report here, it’s free.
What The Market Is Telling Us
Rivian’s shares are extremely volatile and have had 52 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 4 days ago when the stock gained 6% on the news that the company announced a loan agreement with the U.S. Department of Energy worth $6.6 billion to construct a new manufacturing facility in Georgia. The fund is expected to support the creation of 7,500 new manufacturing jobs and accelerate the production of Rivian's new vehicles (R2 SUV and R3 crossover).
Rivian is up 0.5% since the beginning of the year, but at $13.32 per share, it is still trading 26.4% below its 52-week high of $18.11 from July 2024. Investors who bought $1,000 worth of Rivian’s shares at the IPO in November 2021 would now be looking at an investment worth $132.23.
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