Rivian Stock Tumbles 6% Amid Policy Uncertainty, Fed Concerns

Benzinga
2025.04.21 19:01
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Rivian Automotive Inc's shares fell 6.1% to $10.90 amid rising political and economic uncertainty, leading to a selloff in risk assets. The company faces challenges from high cash burn, competitive pressures, and the Federal Reserve's indecision on policy, which could impact borrowing costs. Fed Chair Jerome Powell's warnings about economic slowdown and inflation, coupled with President Trump's criticism of the Fed, have further shaken investor confidence. Rivian's growth outlook appears fragile as foreign investment wanes and bond yields rise, raising concerns about its long-term viability.

Shares of Rivian Automotive Inc RIVN plunged 6.1% to $10.90 during Monday’s session as rising political and economic uncertainty sparked a broad selloff in risk assets.

The electric vehicle (EV) maker, already grappling with a high cash burn and a competitive EV landscape, is particularly exposed to the Federal Reserve's policy indecision and evolving trade dynamics.

What To Know: Fed Chair Jerome Powell's recent remarks flagged a slowdown in economic growth and warned that new tariffs could trigger persistent inflation—just as Rivian faces higher input costs and slowing consumer demand. Powell also signaled no immediate rate cuts, undermining hopes for cheaper capital in a capital-intensive sector like EV manufacturing.

Compounding matters, President Donald Trump's vocal attacks on Powell and hints at possible dismissal have rattled investor confidence in U.S. monetary stability.

Rivian, reliant on future borrowing and investment sentiment, is especially vulnerable to spikes in interest rates and dollar volatility.

With foreign investors showing signs of retreat and long-term bond yields rising, Rivian's growth prospects appear increasingly fragile—fueling today's sharp selloff and renewed concerns over its long-term viability in an unsettled economic climate.

Read Also: Wall Street Sinks, Dollar Slides As Trump Ramps Up Fed Attacks: What’s Driving Markets Monday?

How To Buy RIVN Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Rivian Automotive’s case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data fromBenzinga Pro, RIVN has a 52-week high of $18.86 and a 52-week low of $8.32.