The Rivian stock has lost about 23% over the past month. The shares of the electric vehicle (EV) startup started the week in the same bearish trend after registering a 7% drop early Monday.
However, the stock had surged 9% at the time of writing besides starting the day on a 4.47% drop. In general, the stock has risen by about 29% over the past week although it still remains volatile.
Why has the Rivian stock dropped?
Rivian has been going through tough times since the start of the year following a sharp rise in costs and disruptions in the supply chains including those of semiconductor chips; something that has led to a push by the startup to plan to establish a factory in Morgan and Walton Counties in Georgia, east of Atlanta with capabilities of manufacturing semiconductor chips.
Unfortunately, the move that would have gone a long way in enabling the EV startup to rise from the ashes could be up in smoke after some local opposition for the $5 billion factory.
There is a potential conflict of interest involving a local public official who owns 675 acres of the property that Rivian wants to buy to construct the new factory. The official by the name of Alan Verner was head of the Joint Development Authority at the time discussions for the project began and if Rivian was to go ahead and purchase the property, Alan’s family would make more than $20 million.
To make things worse, Georgia’s legislators failed to pass a bill that could let Rivian and other EV automakers to sell EVs directly to consumers in Georgia.
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