Why Rivian Stock Sank Today
Shares of Rivian Automotive (NASDAQ: RIVN) slumped today and were trading nearly 7% lower as of 1:30 p.m. ET Tuesday. With Donald Trump taking the oath of office on Monday and revoking as many as 78 executive orders signed by his predecessor Joe Biden -- including one on electric vehicles (EV) -- investors in Rivian are feeling jittery.
Among several other orders signed by Biden, President Trump revoked a 2021 executive order on Monday that set a goal of 50% of all new vehicles sold in the U.S. to be electric by 2030. Trump also halted the distribution of the remaining $5 billion in funds for EV charging infrastructure, and may remove the $7,500 federal tax credit available on some EV purchases.
In short, while Biden's EV goals were part of his big plans to fight climate change and provided a huge impetus to the EV industry, Trump's moves could slam the brakes on the industry. That's spooking investors in Rivian, who were finally turning hopeful about the company after a long wait.
Source Fool.com
