Morgan Stanley Issues a Warning on Rivian (RIVN) Stock


  • Rivian (RIVN) stock is falling on Thursday following a warning from Morgan Stanley.
  • The firm has concerns about the electric vehicle (EV) company’s performance.
  • This comes after Rivian revealed disappointing production estimates for 2024.
RIVN Stock - Morgan Stanley Issues a Warning on Rivian (RIVN) Stock

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Rivian (NASDAQ:RIVN) stock is sliding lower on Thursday after Morgan Stanley analysts issued a warning for investors in the electric vehicle (EV) company.

Morgan Stanley analysts reiterated their “overweight” rating for RIVN stock today. For comparison, the analyst consensus rating for the company’s shares is a moderate buy based on 23 opinions.

Unfortunately, that update comes with a warning traders will want to keep in mind. Here’s what Morgan Stanley said about RIVN in a note to clients obtained by CNBC:

“While consumers love the R1 and investors would love a ‘non-Tesla’ way to play the long-term EV theme, Rivian’s results continue to largely disappoint, whether on volume or margin progression. … The EV landscape has changed decidedly for the worse since Rivian’s November 2021 IPO, yet – tweaks aside – the company’s strategy appears to have been largely unchanged.”

RIVN Stock Falls on Layoffs

Investors will also note that Rivian announced layoffs for 10% of its salaried workers today. That came about after the company provided production estimates of 57,000 units in 2024, as compared to Wall Street’s 80,000-unit estimate.

Rivian notes that weaker demand for its EVs is behind this low production target. The company also points toward an uncertain economy and high interest rates as another reason for the low production guidance and job cuts.

RIVN stock is down 27.4% as of Thursday morning with more than 81 million shares traded. For the record, its daily average trading volume is about 33.7 million shares.

Of course, there’s plenty of other stock market news that traders will want to read about below!

We’re offering coverage of all the hottest stock market stories worth reading about on Thursday. Among that is what has shares of Nvidia (NASDAQ:NVDA), Novavax (NASDAQ:NVAX) and Super Micro Computer (NASDAQ:SMCI) stock. You can catch up on all of that news at the following links!

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On the date of publication, William White did not hold (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 Publishing Guidelines.

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