Rivian (RIVN) Stock Falls as Hybrid EV Sales Ramp Up


  • Rivian (RIVN) fell to a 52-week low of $9.38 following increased hybrid demand over electric vehicles.
  • The decline is also attributed to Ford (F) lowering the prices on its 2024 F-150 Lightning electric trucks by as much as $5,500.
  • Truist reiterated its RIVN stock price target of $11 this morning.
RIVN stock - Rivian (RIVN) Stock Falls as Hybrid EV Sales Ramp Up

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Rivian (NASDAQ:RIVN) stock is down more than 6% today, reaching a new 52-week low of $9.38 during intraday trading. RIVN stock received a boost in early March following its debut of the R2, R3 and R3X, although all of those gains have since reversed.

Like many other electric vehicle (EV) makers, the company is feeling pressure from high interest rates, price wars and a preference for hybrids over EVs. On Tuesday, Ford (NYSE:F) continued the price war after cutting the prices of its 2024 F-150 Lightning electric pickup trucks by as much as $5,500.

2023 marked the first year in which EV sales breached 1 million. At the same time, the growth of hybrid sales outpaced EV growth in 2023. According to S&P Global Mobility, hybrids accounted for 9.3% of new light vehicle registrations from January to November 2023 while EVs were 7.5%.

“[Brian Moody, Executive Editor at Kelley Blue Book,] pointed to findings from a Kelley Blue Book study from last year showing a majority of Americans said environmental concerns factor into their vehicle purchasing decisions, but most also said they felt a hybrid was a better fit for their lives than an EV,” said Fox Business.

RIVN Stock Hits New 52-Week Low on Strong Hybrid Sales

Moody highlighted several reasons for customers choosing hybrids over EVs, such as anxiety about the time it takes to locate chargers and a fear of new technology. Affordability also comes into play, as the average EV costs $66,997 before incentives compared to the average hybrid cost of $39,040 before incentives. Hybrids also have a lower average insurance cost when compared to EVs.

On top of that, RIVN stock has received at least three analyst price target changes this month. The most recent reduction is attributable to Truist analyst Jordan Levy, who reiterated his price target of $11 this morning.

Levy noted that the Ford price cuts should have a “muted near-term impact” on RIVN due to over 50% of its recent production being attributed to the R1S SUV instead of the R1T pickup truck. Levy’s main focus is on margin improvement following the end of Rivian’s planned shutdown of its Normal, Illinois facility, which was enacted in order to improve the efficiency of its assembly lines. The shutdown began on April 6 and is set to end on April 28.

Meanwhile, Goldman Sachs lowered its price target to $11 from $13 while CFRA cut its target to $8 from $10.

On the date of publication, Eddie Pan 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 InvestorPlace.com Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

Article printed from InvestorPlace Media, https://investorplace.com/2024/04/rivian-rivn-stock-falls-as-hybrid-ev-sales-ramp-up/.

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