Shares of electric vehicle maker Rivian (NASDAQ:RIVN) stock are sinking today after reports surfaced that the company may miss its production targets and its chief operating officer has stepped down.
RIVN fell as much as 3% this morning to $79.27 per share on the pessimistic news. Today’s decline brings the total decrease in shares to 30% over the past month.
In the last five trading sessions alone, Rivian stock has fallen 21%, making it one of the worst performers in the technology-laden Nasdaq. News that company COO Rod Copes has left the company after nearly two years in the senior executive role is exacerbating the slump in Rivian’s stock price.
What’s Going on With RIVN Stock?
Why It Matters
Shortly after its IPO, Rivian briefly had a market capitalization of $100 billion, which was greater than established U.S. automakers General Motors (NYSE:GM) and Ford (NYSE:F). At the time of its market debut, many Wall Street analysts had said that Rivian was one of the most likely contenders to challenge electric vehicle leader Tesla (NASDAQ:TSLA). That narrative appears to now be unravelling.
What’s Next for Rivian?
Until the company manages to get its vehicle production on track, and find a permanent replacement for its COO, RIVN stock is likely to continue trending lower. Investors would be well advised to steer clear of Rivian until it manages to counter the negative media reports that continue to swirl around it and pull down its stock.
On the date of publication, Joel Baglole held a long position in GM. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.