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Why Is Rivian (RIVN) Stock Down 12% Today?

  • Rivian (RIVN) will report earnings tonight, and investors are nervous, with RIVN stock hitting multi-month lows.
  • The report comes after a disappointing quarter from Lucid (LCID) and amid selling pressure in the EV space.
  • Investors will want to know that production is on track and that Rivian is sufficiently funded.
RIVN stock - Why Is Rivian (RIVN) Stock Down 12% Today?

Source: Miro Vrlik Photography / Shutterstock.com

Shares of Rivian (NASDAQ:RIVN) are getting hit hard on Wednesday, falling more than 12% so far on the day. Today’s decline marks the stock’s fifth daily decline out of the seven trading sessions we’ve seen so far in November. In that span, RIVN stock is down just over 20%.

Unfortunately, there is a plethora of bad news impacting the stock — all of which comes before the company reports earnings after the close.

First, Lucid (NASDAQ:LCID) is down almost 20% on the day after the company reported earnings. A disappointing quarter included top- and bottom-line misses, although management reiterated its previous production guidance.

Second, Tesla (NASDAQ:TSLA) stock is hitting new 52-week lows, down more than 6.5% so far on the day. Shares are again making new lows, as growth and tech stocks take a hit. It also comes as CEO Elon Musk sold about $4 billion worth of stock just days after closing on his acquisition of Twitter.

Lastly, Arrival (NASDAQ:ARVL) shares plunged 35% on Tuesday and are making new lows today. That’s on worries that the company will have insufficient cash moving forward.

What Does This Mean for RIVN Stock?

The catalysts above are three EV-related situations. However, investors are also digesting the midterm election results and gearing up for the monthly inflation report that will be released before the open on Thursday.

Some investors are wondering, what does this have to do with RIVN stock? The EV-related catalyst plays a role in how Rivian shares are trading but so too does the overall market.

Further, as companies like FedEx (NYSE:FDX) and Amazon (NASDAQ:AMZN) note slowdowns in the economy and hiring, it creates concern about demand for vehicles — like Rivian. That said, Amazon will be rolling out its Rivian fleet ahead of the holidays.

However, investors are also concerned ahead of Rivian’s earnings results, due after the close on Wednesday. Consensus expectations call for a loss of $1.83 a share on revenue of roughly $554 million.

Ahead of earnings, investors are clearly nervous, as RIVN stock is trading at its lowest level since July. For a binary event like earnings, investors are hoping it will be enough to stop the bleeding and reverse the losses. But nothing is a certainty in this environment.

On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.

Article printed from InvestorPlace Media, https://investorplace.com/2022/11/why-is-rivian-rivn-stock-down-12-today/.

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