Rivian Automotive, Inc. (RIVN) shares plummeted 6.45% in intraday trading, wiping out most of the previous day's gains as investors reassessed the impact of potential new vehicle import tariffs on the electric vehicle maker.

The stock's decline comes on the heels of a 7.6% surge in the previous session, when investors initially believed Rivian would benefit from President Trump's proposed 25% tariff on imported vehicles and auto parts. As a U.S.-based manufacturer, Rivian was seen as potentially gaining a competitive edge over rivals like General Motors and Ford, who import some of their electric vehicles.

However, the sentiment quickly reversed following reports that President Trump had warned U.S. automakers not to increase prices to compensate for the tariffs. This unexpected twist has led investors to reevaluate Rivian's potential advantage in the market. If competing automakers cannot raise prices to offset the tariff costs, Rivian may not benefit from the anticipated price gap that would have made its vehicles more attractive to consumers.

The reversal highlights the volatile nature of the automotive industry in the face of changing trade policies. For Rivian, which is still working towards profitability, the ability to increase sales volume is crucial. The company had hoped to benefit from potentially higher-priced competitors, but the latest developments have cast doubt on this scenario, leading to today's significant stock decline.