What Happened?
Shares of electric vehicle manufacturer Rivian (NASDAQ: RIVN) fell 6.5% in the afternoon session after a broader slowdown in the electric vehicle market and significant U.S. regulatory headwinds.
The negative sentiment was fueled by news that EV giant BYD cut its 2025 sales target, signaling the company's slowest annual growth in five years. This aligns with a broader trend, as U.S. EV sales declined in the second quarter and grew by only a modest 1.5% in the first half of 2025.
Adding to the pressure, U.S. EV companies are facing challenges from recent policy changes. The removal of the $7,500 EV tax credit is expected to slow revenue growth. Furthermore, the end of the Corporate Average Fuel Economy (CAFE) program has frozen the market for regulatory credits. Rivian has estimated this will cost it over $100 million in high-margin revenue. Tariffs on raw materials like steel and aluminum are also increasing production costs for the automaker.
The shares closed the day at $13.71, down 5% from previous close.
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What Is The Market Telling Us
Rivian’s shares are extremely volatile and have had 32 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock gained 7.4% on the news that the company confirmed the upcoming integration of Apple CarKey support and as analysts anticipate strong demand for its R2 SUV. The Apple CarKey feature will allow owners to use their iPhones and Apple Watches as vehicle keys, enhancing user convenience. This news adds to the positive sentiment surrounding the electric vehicle maker's upcoming R2 SUV, for which analysts foresee strong demand. Additionally, Rivian has been bolstering its value proposition by expanding charging options. The company's integration with the Tesla Supercharger network provides its vehicle owners access to over 21,500 additional DC fast chargers across North America, addressing a key concern for potential EV buyers.
Rivian is up 3% since the beginning of the year, but at $13.65 per share, it is still trading 19.3% below its 52-week high of $16.92 from May 2025. Investors who bought $1,000 worth of Rivian’s shares at the IPO in November 2021 would now be looking at an investment worth $135.51.
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