Why Rivian Stock Is Stuck in Reverse Today
After driving higher on Monday and Tuesday, Rivian Automotive (NASDAQ: RIVN) stock is headed in the other direction today. For a couple of reasons, it seems that electric vehicle (EV) peer is the factor contributing to Rivian's sell-off today. Besides Tesla's disappointing earnings report, investors are reacting to news regarding litigation between the two companies.
As of 11:02 a.m. ET, shares of Rivian are down 5.6%, recovering slightly from their earlier decline of 8.3%.
The first red flag that investors recognized today was news that a judge, in a tentative order, had denied Rivian's motion to dismiss a lawsuit that began in 2020, in which Tesla alleges that Rivian incited former Tesla employees to steal secret information. Santa Clara County Superior Court Judge Theodore C. Zayner will hold a hearing today before issuing a final order with regard to the trial proceeding. Investors are likely fearful that should Rivian lose the lawsuit it would be required to pay a hefty sum in damages, possibly imperiling the unprofitable company.
Source Fool.com
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