Stock Market Today: Rivian Falls as EV Credit Sunset and Demand Worries Bite

Rivian Automotive (NASDAQ: RIVN) dropped 5.1% Thursday to close at $13.70. Volume surged to 82.5 million shares, more than double its three-month average of 35.4 million, highlighting intense selling interest.

The broader market strengthened, with the S&P 500 (SNPINDEX: ^GSPC) up 0.8% and the Nasdaq Composite (NASDAQINDEX: ^IXIC) rising 1%, with gains reflecting positioning ahead of Friday's jobs report as traders expect softer labor data to increase the odds of Federal Reserve prime rate cuts.

Peers were mixed. Tesla (NASDAQ: TSLA) climbed 1.3% to $338.53, while Nio (NYSE: NIO) slid 3% to $6.13. Rivian's decline stood out despite a supportive macro backdrop, suggesting company- and sector-specific headwinds dominated trading.

Rivian's pullback reflects investor unease about tariffs as well as the scheduled Sept. 30 expiration of the federal $7,500 EV tax credit, which may cut demand once the incentive vanishes. This is compounded by broader signs of cooling EV demand and the company's cost-management layoffs.

Market data sourced from Google Finance and Yahoo! Finance on Thursday, Sept. 4, 2025.

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Daily Stock News has no position in any of the stocks mentioned. This article was generated with GPT-4o, OpenAI's large-scale language generation model and has been reviewed by The Motley Fool's AI quality control systems. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.