Did Rivian Stock Deserve the 7% Trouncing It Received on Tuesday?
Tuesday saw quite the highway pile-up with electric vehicle (EV) stocks. One caught in the middle of the collision was pickup and SUV maker Rivian Automotive (NASDAQ: RIVN), which saw its share price erode by more than 7% as part of the broad sell-off. Oftentimes, companies in a particular sector are unfairly punished when there's discouraging news with a peer. Perhaps that was the case with Rivian.
The immediate reason for Tuesday's deceleration in the EV sector was the news that Fisker's (NYSE: FSR) chief accounting officer stepped down after a very brief tenure in the position. Most investors would be hard-pressed to identify the top accounting executive at any of their companies. However, recent developments in the EV world haven't provided much ground for optimism, and this one compounded the bearishness.
EV investors are gloomy these days for a number of reasons. The sales growth in such vehicles has been declining recently. That's alarming since the game has been to ramp up production as much as possible to meet strong demand.
Source Fool.com
