Why Rivian, Lucid, and Canoo Stocks Sank Today
Shares of electric vehicle (EV) makers have been dropping sharply Thursday. Early-stage companies like Rivian Automotive (NASDAQ: RIVN), Lucid Group (NASDAQ: LCID), and Canoo (NASDAQ: GOEV) took some of the biggest hits, dropping by between about 5% and 8% at their lows of the morning.
As of 1 p.m. ET, those three stocks were lower by 6.1%, 3.4%, and 6.9%, respectively. The session's declines put each of them at or near their all-time record lows.
As fourth-quarter EV delivery data has begun trickling out this week, investors are growing more and more concerned about the pace of expected growth in the industry. That's especially true for start-ups like these. One of the main drivers for valuations in the EV sector has been the expectation for overall demand growth. After Rivian came up short on its production and delivery report this week, and with more data arriving Thursday, investors are lowering their valuation levels for stocks in the industry.
Source Fool.com
