Why Rivian, Lucid, and Canoo Shot Higher Monday
The stock market opened the trading week on an a high note, with major indexes rising more than 2% early Monday morning. The tech-heavy Nasdaq was leading the charge, with electric vehicle (EV) growth stocks like Rivian Automotive (NASDAQ: RIVN) and Lucid Group (NASDAQ: LCID) rising as much as 6% and 8.7%, respectively. EV start-up Canoo (NASDAQ: GOEV) was an even bigger gainer. As of 10:50 a.m. ET, Rivian was still higher by 5.9%, Lucid by 6.8%, and Canoo by 18%.
Today's bounce doesn't change what has been a painful year for shareholders of these growth companies. Shares of the EV start-ups are down between 67% and 80% year to date. The stocks have struggled as the companies work to build their respective businesses in the face of supply chain snarls and rising raw material costs.
Canoo even warned of the potential for bankruptcy earlier this year. After the company reported first-quarter earnings in early May, management issued a warning in the company's Securities and Exchange Commission filing, saying there was "substantial doubt" that its business could continue. It reiterated that warning in August even as it subsequently reported potentially significant order wins, which is also what is helping the stock outperform today.
Source Fool.com
