Why Are Rivian (RIVN) Shares Soaring Today
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.
Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNBC
a few seconds ago
- CNBC
Chinese AI firms form alliances to build domestic ecosystem amid U.S. curbs
China's artificial intelligence companies have announced two new industry alliances, aiming to develop a domestic ecosystem to reduce dependence on foreign tech as they seek to cope with U.S. export restrictions on advanced Nvidia chipsets. The announcements were timed to coincide with the three-day World Artificial Intelligence Conference in Shanghai ending on Monday. The conference also showcased a slew of new products, such as an AI computing system from Huawei that experts believe rivals Nvidia's most advanced offering, as well as consumer-friendly products such as several kinds of digital AI glasses. The "Model-Chip Ecosystem Innovation Alliance" brings together Chinese developers of large language models (LLMs) and AI chip manufacturers. "This is an innovative ecosystem that connects the complete technology chain from chips to models to infrastructure," said Zhao Lidong, CEO of Enflame, one of the participating chipmakers. Other manufacturers of graphics processing units (GPUs) in the alliance include Huawei, Biren, and Moore Threads, which have been hit by U.S. sanctions that block them from purchasing advanced tech made with U.S. know-how. The alliance was announced by StepFun, an LLM developer. A second alliance, the Shanghai General Chamber of Commerce AI Committee, aims to "promote the deep integration of AI technology and industrial transformation." Participants include SenseTime, also sanctioned by the U.S. and which has pivoted from facial recognition technology to LLMs. Others are StepFun and another LLM developer, MiniMax, as well as chipmakers Metax and Iluvatar CoreX. One of the most talked about products at the conference was Huawei's CloudMatrix 384 which incorporates 384 of its latest 910C chips and outperforms Nvidia's GB200 NVL72 on some metrics, according to U.S. research firm SemiAnalysis. Huawei's system design capabilities have meant that it has been able to use more chips and system-level innovations to compensate for weaker individual chip performance, SemiAnalysis said. At least six other Chinese computing firms showcased similar "clustering" chip technology. Metax demonstrated an AI supernode featuring 128 C550 chips designed to support large-scale liquid-cooled data centre requirements. Other events included Tencent's unveiling of its open-source Hunyuan3D World Model 1.0, which the company said enables users to generate interactive 3D environments through text or image prompts. Baidu announced what it said was next-generation "digital human" technology that helps businesses to create virtual livestreamers. It features "cloning technology" that can replicate a human's voice, tone, and body language from just 10 minutes of sample footage. Alibaba was among those announcing AI glasses. Its Quark AI Glasses are powered by its Qwen AI model and are due to be released in China by the end of 2025. They will allow users to access the tech giant's map service for easy navigating and to use Alipay by scanning QR codes with voice commands.
Wall Street Journal
a few seconds ago
- Wall Street Journal
Heard on the Street Friday Recap: European Negotiation
The S&P 500 closed at a record for the fifth session in a row. The S&P advanced 0.4% Friday and the Nasdaq Composite rose 0.2%, both hitting all-time highs. The Dow Jones Industrial Average added 208 points. Calmer Federal Reserve politics boosted the dollar. After a visit to the Fed's headquarters renovations, President Trump said he didn't think it was necessary to fire Chair Jerome Powell. The WSJ Dollar Index rose about 0.3%, while gold fell.
Business Insider
8 minutes ago
- Business Insider
Pinnacle Financial Partners (PNFP) Receives a Buy from Barclays
Barclays analyst Jared Shaw maintained a Buy rating on Pinnacle Financial Partners on July 25 and set a price target of $125.00. The company's shares closed last Friday at $91.56. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. According to TipRanks, Shaw is a 3-star analyst with an average return of 1.1% and a 53.28% success rate. Shaw covers the Financial sector, focusing on stocks such as UMB Financial, Cadence Bank, and BankUnited. In addition to Barclays, Pinnacle Financial Partners also received a Buy from Truist Financial's John McDonald CFA in a report issued on July 25. However, on July 26, TR | OpenAI – 4o downgraded Pinnacle Financial Partners (NASDAQ: PNFP) to a Hold. The company has a one-year high of $131.91 and a one-year low of $81.57. Currently, Pinnacle Financial Partners has an average volume of 673.6K. Based on the recent corporate insider activity of 56 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PNFP in relation to earlier this year. Most recently, in May 2025, Robert A. Jr. Mccabe, the CHAIRMAN of PNFP sold 50,589.00 shares for a total of $5,326,515.81.
