Why Rivian Is Helping Drive Electric Vehicle Stocks Higher Today
Shares of several U.S.-based electric vehicle (EV) companies are moving higher today and investors can probably thank Rivian Automotive (NASDAQ: RIVN) for that. Shares of Rivian jumped as much as 11.2% in early trading today, and that helped the stocks of other EV names, including Lucid Group (NASDAQ: LCID) and Nikola (NASDAQ: NKLA), to also move higher by 6% and 6.8%, respectively.
All three stocks cooled down somewhat after the early jumps. As of 12:20 p.m. ET, shares of Rivian, Lucid, and Nikola were holding gains of 8.6%, 1.6%, and 2.2%, respectively. And there was good reason why Rivian remained the strongest of the group.
After the entire EV sector has seen recent stock declines driven by manufacturing and cost headwinds, Rivian CEO RJ Scaringe injected some new confidence with a filing yesterday showing he just bought more than $1 million in his company's stock. Investors often say that there can be many reasons to sell, but there's only one reason why an insider adds to holdings of their company's common stock -- they expect it will move higher.
Source Fool.com
