What's Going On With Rivian Stock?

Rivian Automotive Inc RIVN shares are trading lower by 6.8% to $25.44 Wednesday afternoon. Stocks across sectors are trading lower after Fitch downgraded the long-term credit rating of the United States. This has weighed on market sentiment and pressured growth sectors.

Rivian, like many EV startups, relies heavily on external funding to support its operations and expansion plans. A credit rating downgrade of the U.S. government could result in higher interest rates and tightened credit conditions, making it more challenging and expensive for Rivian to raise funds through debt offerings or attract investment from lenders and investors.

See Also: What's Going On With Intel Shares?

Credit rating downgrades can also create overall negative sentiment in the financial markets. Investors may become more risk-averse and cautious, particularly towards high-growth, high-risk assets like EV stocks. This shift in investor sentiment could lead to a reduction in demand for Rivian's shares and a subsequent decline in its stock price.

What Happened With Fitch?

In a move that sent shockwaves through global markets, Fitch Ratings downgraded the United States’ sovereign credit grade from AAA to AA+. This downgrade, echoing a move by S&P Global more than a decade ago, comes as a result of several concerning factors affecting the nation’s fiscal management...Read More

According to data from Benzinga Pro, RIVN has a 52-week high of $40.86 and a 52-week low of $11.68.