Rivian Stock Plummets: Trump's Anti-EV Moves and Production Woes Take a Toll

Rivian Automotive's (RIVN) stock price took a significant hit this week, declining by 10.1% as of market close on Monday, January 25, 2025. The stock had been down as much as 12.2% earlier in the week, according to data from S&P Global Market Intelligence. This leg down comes as the S&P 500 and Nasdaq-100 gained 1.7% and 1.6%, respectively, highlighting the specific challenges facing Rivian.



Two primary factors contributed to Rivian's stock price decline this week:

1. President Trump's Anti-EV Moves: On Monday, President Trump revoked several executive orders signed by his predecessor, Joe Biden, including one on electric vehicles (EVs). This move spooked investors in Rivian, as Biden's EV goals had provided a significant impetus to the industry. Trump's actions, which include halting the distribution of funds for EV charging infrastructure and potentially removing the $7,500 federal tax credit for EV purchases, could slow down the growth of the EV market and negatively impact Rivian's sales and profitability.
2. Production Woes and Delays: Rivian reported that it produced only 49,476 vehicles in 2024, down nearly 14% from 2023. Additionally, its deliveries of 51,579 units last year were up only about 3% from 2023. These production and delivery figures fell short of expectations, indicating that Rivian is still facing production challenges and delays. Despite the company's claim that a component shortage is no longer a constraint, investors remain cautious about Rivian's ability to ramp up production and meet its targets.

Rivian's CEO, RJ Scaringe, acknowledged the uncertainty introduced by Trump's actions but expressed optimism that any impact would be minimal. He stated that the removal of the tax credit will force the company to explore making lower-priced vehicles, something many investors think is key to Rivian's success. However, the future for Rivian and other EV makers remains cloudy, as the impact of Trump's moves on the EV market and Rivian's sales remains to be seen.

In conclusion, Rivian's stock price decline this week reflects a combination of external market sentiment and internal company performance. President Trump's anti-EV moves have created uncertainty and concern among investors, while Rivian's production woes and delays have raised questions about the company's operational capabilities and growth prospects. As the situation unfolds, investors will closely monitor Rivian's ability to adapt to these challenges and maintain its competitive edge in the EV market.