One of the most anticipated IPOs of 2021 was that of electric vehicle company Rivian Automotive Inc. Rivian counts Ford Motor Company and Amazon.com, Inc. as investors and can also add two members of U.S. Congress to the list of its backers.
What Happened:U.S. Rep. Donald McEachin (D-VA) reported a purchase of Rivian shares. The purchase was made on Dec. 17, according to CongressTrading.
The purchase price of McEachin’s stake in Rivian is listed at $1,000 to $15,000, a relatively small stake in the electric vehicle maker.
The disclosure by McEachin follows an earlier disclosure by U.S. Rep.Marie Newman (D-IL), who purchased a stake of $15,000 to $50,000 in Rivian on Nov. 10, the day the company went public at $78 per share.
Both McEachin and Newman are Democratic members of Congress and now share being RIVN shareholders in common.
Why It’s Important:Members of Congress have come under pressure for buying and selling stocks, especially when they are members of committees and sub-committees that could give them an early look at information or potential government contracts and tax breaks.
Newman, a Democrat serving the state of Illinois, serves on the Committee on Transportation and Infrastructure.
McEachin serves on the Committee of Energy and Commerce and on the Select Committee on the Climate Crisis.
A push for tax breaks for electric vehicles that has generated support from Democrats in Congress could benefit a company like Rivian, which may cause a conflict of interest for Newman and McEachin.
Several members of Congress including Dan Crenshaw and Nancy Pelosi own shares of electric vehicle company Tesla Inc. There has been an ongoing debate on if all electric vehicle companies should benefit from new tax breaks or if ones that feature union made electric vehicles should see additional tax breaks.
RIVN Price Action:Rivian shares are down 7.90% to $89.98 Monday at market close. Shares have traded between $88.40 and $179.47 since going public Nov. 10, 2021.
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