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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
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  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Why Are Rivian (RIVN) Shares Soaring Today

RIVN Cover Image

What Happened?

Shares of electric vehicle manufacturer Rivian (NASDAQ: RIVN) jumped 6% in the afternoon session after the company announced it will establish a new East Coast headquarters in Atlanta. 

The new office, expected to open in late 2025, will bring the EV automaker closer to its new $5 billion manufacturing plant currently under construction in Georgia. The headquarters will eventually house up to 500 employees, deepening the company's operational footprint in the U.S. Southeast. This strategic expansion reinforces Rivian's commitment to the region as it prepares to launch its next-generation, more affordable R2 and R3 vehicle platforms. 

Broader economic news also provided a tailwind for the stock. The consumer discretionary sector, which includes automakers, received a boost from a new report showing that U.S. retail sales rose a better-than-expected 0.6% in June. This suggests consumer spending remains strong, a positive sign for companies selling big-ticket items like electric vehicles.

Is now the time to buy Rivian? Access our full analysis report here, it’s free.

What Is The Market Telling Us

Rivian’s shares are extremely volatile and have had 36 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 4 days ago when the stock dropped 3.1% after Guggenheim analyst Ronald Jewsikow moved the electric vehicle maker's rating to 'Neutral' from 'Buy'. The downgrade reflects growing concerns over weakening demand for Rivian's current R1T pickup and R1S SUV models. Guggenheim also pointed to headwinds from recent U.S. policy changes, including the elimination of the $7,500 federal EV tax credit, which could negatively impact future sales and profitability. The firm lowered its 2028 sales forecast for Rivian significantly, from 185,000 units to 150,000, citing the softer demand for the R1 platform as a potential negative indicator for the upcoming, lower-priced R2 and R3 models.

Rivian is up 4.3% since the beginning of the year, but at $13.82 per share, it is still trading 21% below its 52-week high of $17.50 from July 2024. Investors who bought $1,000 worth of Rivian’s shares at the IPO in November 2021 would now be looking at an investment worth $137.24.

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