Rivian Automobile Inc. (NASDAQ: RIVN), is up by 13% after California announced it would revive incentives for electric vehicle buyers in the event Donald Trump decides to end federal tax credits on electric vehicles.
Gov. Gavin Newsom will announce a revised version of California’s CVRP program (clean vehicle rebate program) in the event that President-elect Trump eliminates rebates for buying certain new electric cars.
According to a new study, the end of federal tax incentives could lead to a decline in demand for EVs in the US by 27%.
This is part of why the stock price for Rivian has fallen sharply since mid-July.
Californian news and Rivian stocks
California has the highest number of EVs in the United States.
More than 2,000,000 electric cars have been sold by the state to date.
Clean Vehicle Rebate Programme first launched in 2010, and provided incentives for EV purchasers until late last year, when funds were exhausted.
However, Gov. Gavin Newsom plans to revive the program if Donald Trump, the 47 th president of the United States, announces the end of federal EV Tax Credits.
Trump will be inaugurated on 20 th 2025.
Rivian’s stock has dropped more than half compared to its 52-week peak.
Tesla settles with RIVN
Rivian’s shares rose on Monday, also due to a settlement it made with Tesla Inc. in a suit accusing it of stealing EV secrets.
In the 2020 lawsuit, it was also alleged that employee theft had occurred at the manufacturer of electric vehicles.
Tesla is expected to dismiss the lawsuit by December 24, .
Details of the agreement between RIVN and RIVN have yet to be disclosed.
This news comes just days after Rivian Automobile reported that its revenue for the third quarter was over $100,000,000 below Street expectations.
Rivian does not pay dividends to income investors.
Rivian shares could be worth double their current price
Rivian has caused its shareholders a lot of pain this year, but an analyst at Canaccord expects that next year will be different.
George Gianarikas, despite RIVN’s weak performance, has set a price of $23, which translates into a near 100% increase from the current level.
Why? Why? Because management of the company reiterated their production guidance in this month’s report and stated that they continue to expect a positive gross margin for the fourth quarter 2024.
Canaccord Genuity advises Rivian shareholders to own shares, not only because Volkswagen has recently increased its investment plans in the EV manufacturer from $5.8 Billion.
Crispus Nyaga, our market analyst sees the possibility of 125% growth in Rivian’s shares. They have formed recently a bullish pattern with a double bottom.
The post Rivian Soars 13% On Monday After Double Dose of Good News may be updated as new developments unfold.
