What happened
Shares of the electric vehicle (EV) maker Rivian Automotive (RIVN 8.41%) were rising for the second straight day as the broader market rose this morning and as Chinese EV stocks posted significant gains.
Rivian investors are likely happy to see other companies in the industry experiencing share price rebounds. The electric automaker's share price was up 12.5% as of 11:32 a.m. ET.
So what
Rivian investors had already sent the company's stock higher yesterday as they processed the news that Rivian was hiring longtime automotive veteran Frank Klein as its chief operations officer.
Klein was formerly the president of Magna Steyr, a subsidiary of Magna International, where he oversaw the company's shift to electric vehicles. Prior to that, Klein held numerous management roles at Daimler AG over a 27-year period.
Image source: Rivian Automotive.
That news helped set a positive tone for Rivian this week as investors look for the company to manage rising operational costs due to inflation and, at the same time, ramp up production.
But investors are likely driving Rivian's shares up this morning after the Chinese government indicated that it would work with American regulators to help keep Chinese companies stay listed on U.S. exchanges.
The share prices of many Chinese stocks -- including China-based EV maker Nio -- have tumbled recently after the Securities and Exchange Commission (SEC) announced that five Chinese companies had failed to report mandatory audited financial records.
Under the Holding Foreign Companies Accountable Act, the SEC can delist foreign companies that don't comply with its requirement to provide audited financial records for three consecutive years.
Nio and other Chinese EV stocks weren't on the SEC's list for being potentially delisted, but the threat to Chinese stocks in general has been enough the send their share prices crashing.
But today, both Chinese and American regulators indicated that they could work together to keep potential delistings from happening. That sent many Chinese EV stocks soaring and, subsequently, helped push up Rivian's price.
NASDAQ: RIVN
Key Data Points
Now what
While investors should be glad to see Rivian's share price rising today, they should also brace for more uncertainty. EV stocks have been volatile lately and the broader market has experienced significant declines over the past six months.
That doesn't mean that Rivian isn't a good long-term investment, but it does mean that as investors process a lot of shifting market and economic news right now it's likely that more share price swings could occur in the short term.
