Why Rivian Stock Popped, Then Dropped Today
Rivian Automotive (NASDAQ: RIVN) stock ran up 6.4% through 10 a.m. ET this morning before giving back most of its gains. As of 11 a.m. the stock's still up -- but only 1.9%. So why did Rivian pop and why did it then drop?
Well, the good news is that Rivian is partnering with renewable energy company Sol Systems and apparel company Patagonia to build a 50 MW "Lick Creek Solar project" in Stokes County, North Carolina, to supply clean energy in the area. The bad news is that Bloomberg news just dinged Rivian for "serious" safety violations at its Normal, Illinois, automotive plant.
The other bad news is that there's not much detail in the report about Rivian getting involved in solar power. It doesn't seem relevant to the company's core business of building electric trucks, and might even distract the company from its key concern -- controlling its $5 billion-a-year rate of cash burn.
Source Fool.com
