Why Rivian Stock Rallied Today
Shares of Rivian Automotive (NASDAQ: RIVN) jumped 7.6% on Tuesday, halting the recent plunge in its stock price.
Rivian's shares, like that of many premium-priced growth stocks, had been hit hard in recent weeks as investors responded to the prospect of higher inflation and corresponding rate hikes by the Federal Reserve. Investors tend to value future earnings less when interest rates rise. Growth stocks, in turn, often see their stock prices fall when investors fear that the Fed will need to act more aggressively to tame inflation.
Rivian's third-quarter production shortfall also contributed to the recent swoon in its stock price. Supply chain disruptions led Rivian to warn investors that it would be "a few hundred vehicles short" of its production goal of 1,200 electric vehicles in 2021.
Source Fool.com
