Why Rivian Stock Rebounded Sharply Today
Just when investors thought Rivian Automotive (NASDAQ: RIVN) would sink to new lows today after the stock tanked 6.7% by 10:12 a.m. ET, shares rebounded sharply and surged 3.3% by the close on Tuesday. Yes, Rivian rode the broader market rebound, but something else about the electric vehicle (EV) start-up could finally be giving investors a reason to turn hopeful.
Rivian bulls were caught on the wrong foot earlier this month when the company faced a backlash on social media after it increased prices of its EVs by up to 20% and decided to slap the raise even on those who had already booked vehicles at specific list prices.
As expected, Rivian rolled back the price increase for vehicles reserved before March 1, but it wasn't enough to win back the market's confidence. To add to the woes, the company reported a massive loss for its fourth quarter days later and said it expects to produce only 25,000 EVs in 2022 amid cost and supply concerns.
Source Fool.com
