Why Rivian and Other EV Start-Up Stocks Jumped Tuesday
The market is bouncing back today from a rough last week. Tech stocks are leading the way, with the Nasdaq jumping 3% this morning. But EV start-up stocks are doing even better. Rivian Automotive (NASDAQ: RIVN) is soaring 15.2% as of 11:16 a.m. ET. Lucid Group (NASDAQ: LCID) shares are also higher, jumping 12.3% at that time. Lesser-known Arrival (NASDAQ: ARVL) also popped 21.1% with some additional news of its own.
It's not just the general market rebound that's lifting EV names today. One legacy automaker that is diving full force into EV production announced some news Friday that is lifting the newer players. General Motors announced a price increase for its Hummer EV, one of its first big launches in the sector.
That's especially good news for Rivian after it bumbled its first announced price increase back in March. After the start-up said it was raising prices to offset inflating raw material costs, customers who had already made reservations blew a gasket. The company quickly walked back that increase for existing orders, but it gave Rivian a black eye and raised a red flag concerning management's credibility.
Source Fool.com