Rivian Hits the Brakes on Mercedes Deal: Will the EV Stock Recover?
Electric vehicle stocks have had a tough time in 2022, with companies across the industry feeling the pain. Even as customers remain hungry for EVs, manufacturers have faced challenges in a number of areas, from getting the parts and supplies they need to build vehicles to finding ways to deliver them successfully to buyers.
Rivian Automotive (NASDAQ: RIVN) in particular has suffered considerable share-price declines, with the stock down 75% from its highs shortly after its December 2021 initial public offering. Despite showing considerable promise early on, Rivian hasn't been able to convince investors more recently that it can compete effectively against larger automakers that are finally making their presence felt in the electric vehicle space. On Monday, Rivian only added fuel to the fire in making a key strategic decision that represents an about-face from its plans just a few months ago.
Rivian announced early Monday that it would pause its plans to produce electric commercial vans in Europe. As a result, it no longer plans to pursue the memorandum of understanding that it executed with German automaker Mercedes-Benz just three months ago. The stock fell 4% in response Monday morning.
Source Fool.com
