Rivian Automotive Inc. (RIVN) shares are on the rise today, driven by a combination of factors. On Monday, Canadian Prime Minister Justin Trudeau announced that Canada will join the U.S. and the European Union in imposing tariffs on imported Chinese electric vehicles. Starting October 1st, Canada will levy a 100% tariff on Chinese-made EVs, aiming to counter what Trudeau calls China’s intentional, state-directed policy of over-capacity in the EV market. He stated, “I think we all know that China is not playing by the same rules. What is important about this is we’re doing it in alignment and in parallel with other economies around the world.”
Adding to the news, Rivian experienced a fire at its manufacturing plant in Normal, Illinois, over the weekend. While the fire caused damage to some vehicles in a parking lot, the plant itself remains unaffected. The company is currently investigating the cause of the fire and has not yet disclosed the extent of the vehicle damage.
Despite the incident, analysts on Wall Street remain optimistic about Rivian’s future. Over the past three months, analysts have generally viewed Rivian as an “Outperform” stock, with Colin Langan from Wells Fargo predicting a significant 80% rise in the stock over the next year. The recent 41.44% increase in Rivian’s stock price over the past three months suggests that investors are positive about the company’s prospects and its underlying fundamentals, including its revenue, which grew by 3.3% in the past year.
At the time of writing, Rivian Automotive shares are up 2.58% at $14.32. The news of the tariffs and the fire incident appear to be having a minimal impact on investor sentiment, with the company’s stock demonstrating resilience in the face of these events.
