Why Rivian Stock Jumped, Dropped, and Jumped Again Today
Rivian Automotive (NASDAQ: RIVN) shares have had a volatile week so far, and today's stock moves mirrored that action. Rivian shares jumped as much 2% before a sharp drop to be down 2.4%. As of 2:15 p.m. ET, the stock had recovered most of that, remaining down by just 0.5%.
Rivian stock has had crosscurrents all week since it announced a recall of nearly all of its production vehicles on Monday. That led to a double-digit drop, even though the problem was a potentially loose fastener that could affect the steering column on only about 1% of the recalled electric vehicles (EVs).
Investors felt the EV start-up's reputation may have been damaged, though. Today's drop came after news that fellow early-stage EV company Lucid Group also has initiated a recall of 571 of its vehicles. That added to questions of credibility among these young EV companies. But investors may have had second thoughts looking at Rivian's long-term potential, especially after Lucid just joined Rivian in reaffirming its production target for the full year.
Source Fool.com
