Why Rivian Stock Sank Today
Some news that came out over the weekend is hitting electric vehicle (EV) stocks like Rivian Automotive (NASDAQ: RIVN) hard on Tuesday -- a down day for the broader market. Rivian shares plunged by as much as 5.2% to open the holiday-shortened trading week. As of 2 p.m. ET, the stock was still lower by 2.3%, while the S&P 500 was off by about 0.7%.
During a week when it will report its fourth-quarter and full-year financial results, Rivian is enduring some bad news from the government. While the Biden administration has been highly supportive of EV development and growth, reports this weekend said it plans to take a step back from one of its more ambitious goals -- at least temporarily. The timing of those plans could be of crucial importance for EV start-ups like Rivian.
As the growth rate of EV adoption in the U.S. has slowed, some major domestic automakers have throttled back their plans to increase EV production. Last year, the Environmental Protection Agency (EPA) proposed an ambitious plan for reducing vehicle emissions. For the auto industry to meet the agency's proposed targets would require EVs to account for 60% of new car sales in the U.S. by 2030 and up to two-thirds by 2032. EPA Administrator Michael Regan called the regulations "the strongest-ever federal pollution standards for cars and trucks."
Source Fool.com
