Rivian Automotive’s (NASDAQ:RIVN) chief lobbyist, Jim Chen, is resigning after leading the electric vehicle (EV) maker to various legal victories during his 5-year stint. Chen is expected to leave the company at the end of February.
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The announcement comes at a critical time for Rivian, as the U.S. government is making it harder for some EV models to obtain tax credits. Despite huge support for EVs in the form of federal tax credit incentives, electric trucks and SUVs priced below $80,000 are currently the only EVs that qualify for the credits. With his expertise in bending tricky legal issues in his favor, Chen could have found a way to influence the legislation and bring it to Rivian’s benefit.
Chen was responsible for lobbying states to improve laws that force car companies to sell vehicles through franchise dealers. He ultimately helped the company win the right to sell directly to customers. This was one of his biggest wins during his tenure with Rivian.
Although the departure is said to be a mutual agreement, the announcement comes in the wake of several senior leaders leaving as the company seeks to reduce costs.
Is RIVN a Stock to Buy?
Despite its challenges, Wall Street is fairly hopeful about Rivian. The consensus rating for the stock is Moderate Buy based on 11 Buys, four Holds, and three Sells. RIVN’s price target is $37.29, which means there is room for the stock to appreciate 106% this year.
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