Rivian Automotive, Inc. (NASDAQ: RIVN) saw its stock plummet by 6.45% during Friday's trading session, reversing gains from the previous day as investors reassessed the impact of potential new tariffs on imported vehicles.
The sharp decline came after reports emerged that President Trump had warned U.S. automakers not to increase prices to compensate for his proposed 25% tariffs on imported vehicles and auto parts. This development nullified the potential competitive advantage that Rivian, which manufactures all its electric vehicles in the United States, was thought to have gained just a day earlier.
On Thursday, Rivian's stock had surged 7.6% on the assumption that the company would benefit from the tariffs, as its domestically produced vehicles would be priced more competitively against imported models from rivals like General Motors and Ford. However, Trump's reported warning suggests that the playing field may remain level, leaving Rivian without the anticipated edge in pricing. This sudden shift in market sentiment led to a sell-off, as investors reevaluated Rivian's position in the increasingly complex landscape of the automotive industry under potential new trade policies.
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