Rivian (NASDAQ:RIVN) stock is getting hit hard on Monday, down more than 5% on the day. But it’s not just RIVN stock that’s under pressure.
There’s selling pressure across the board today, with the overall market lower as well as electric vehicle (EV) stocks. Tesla (NASDAQ:TSLA) is down more than 6% on the day. Meanwhile, Nio (NYSE:NIO), Lucid (NASDAQ:LCID) and others are also dropping lower.
Of course, bulls had hoped that RIVN stock would be able to hold up on Monday. That’s because the company inked a new wind energy deal with Apex Clean Energy. Specifically, the two companies have “signed a power purchase agreement (PPA) for 50 MW of electricity from the renewable energy company’s proposed Goose Creek Wind farm.” The wind farm and “other renewable sourcing and on-site generation” will help Rivian “power as much as 75%” of operations at its Normal, Illinois plant.
Rivian Director of Renewable Energy Andrew Peterman had the following to say about the wind farm news:
“We have a tremendous opportunity at Rivian to help tackle emissions beyond the tailpipe to support decarbonization of manufacturing and charging of electric vehicles.”
Can Renewable Energy Revive RIVN Stock?
Despite today’s renewable energy news, RIVN stock is not trading all that well.
The news is a positive for green-oriented investors but, while it may be a positive for the bottom line at some point, it does very little to change today’s prospects. In other words, Rivian still faces the same problems it was facing on Friday. The update does little to change the “right now.”
As for the “right now,” investors are in a risk-off mood as they sell equities and hammer automotive stocks. Along with the EV stocks mentioned above, names like Ford (NYSE:F) and General Motors (NYSE:GM) are also down notably on the day.
RIVN stock is now down more than 9% from Thursday’s high as it rides a three-day skid. For the year so far, shares are also down 71%.
That said, when the company last reported earnings in November, shares exploded higher on the results. Despite a mixed quarter, RIVN stock rallied 17% after the EV maker reaffirmed its 2022 production outlook. Management still expects to produce 25,000 vehicles this year.
So, even though RIVN has been underperforming, there are positives under the hood.
On the date of publication, Bret Kenwell did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.