The reason why Rivan stocks jumped this week

Equity of electric vehicles (EV) manufacturers Ribian car (RNVN 0.80%)) According to the report, Roys rose sharply this week after reporting that the company was stocking battery materials in order to negatively affect President Donald Trump’s tariffs.

Investors may have been optimistic even after the Trump administration said it would soften some of the car tariffs, but many people are still in place.

As a result, Libian’s shares increased 9.8% this week this week, according to data that S & P Global Market Intelligence.

Ribian is preparing for tariffs

Bloomberg reported this week that Rivian has been stocking LFP (LITHIUM-IRON Phosphate) battery cells since the end of last year. The company has begun to set up additional battery materials of Gotion High-Tech, headquartered in China, to soften the impact of Trump’s tariffs.

Libian investors were happy to find out that the company had a bold movement to be somewhat isolated from imported tariffs. It is still unclear how much it will be saved by moving preemptively, but it can be important if the current Chinese import tariff is currently 145%.

Libian investors would also have responded to the Trump administration’s response to some car tariffs this week. The administration said that some auto parts import tariffs will no longer be accumulated. For example, automakers do not need to pay steel and aluminum tariffs in the same area.

Rivian produces cars from ordinary Illinois, plants, but supplies parts of US and foreign suppliers. Therefore, all actions in the administration to reduce the tariffs on the import of auto parts can potentially help Libian.

Long -term

Investors have the right to rejoice in Rivian’s pre -battery sources, but it is also important to pay attention to the fact that the automotive industry is facing a very difficult environment.

With many unknown people for automakers right now General motor and StellantisRecently, the guidelines for tariffs have been cut. If President Trump’s tariffs slow the economy, consumer expenditures can be significantly reduced. And if Rivian is affected by some tariffs in the near future, the price of the vehicle can still rise.

All of this means that there is a clear view of the investor should not be too optimistic and how the economy is affected until the tariff is resolved.