Rivian Automotive (NASDAQ: RIVN) plunged 8% intraday on Monday, adding to an 18% decline over the past five days. Let’s unpack some potential reasons behind this downturn.
Potential Factors Contributing to Rivian’s Downturn
Firstly, Ford Motor Company (NYSE: F) announced earlier in April that it would be reducing prices on some of its F-150 Lightning models by as much as $5,500. This strategic move by Ford aims to boost sales of its electric vehicles (EVs), potentially impacting Rivian’s stock negatively as the F-150 Lightning is seen as one of the direct competitors to Rivian’s electric trucks.
Furthermore, reports emerged on Monday suggesting that Tesla (NASDAQ: TSLA) is planning to lay off 10% of its workforce. This news could also be contributing to the pressure on Rivian shares, as any downturn in the broader EV market tends to have a ripple effect on related companies.
Q1 Production and Delivery Update
Rivian (RIVN) recently announced its vehicle production and delivery figures for the first quarter ending March 31, 2024. The electric vehicle manufacturer produced 13,980 vehicles and delivered 13,588 units from its Normal, Illinois facility during this period. These production and delivery figures align with its forecasts. The company has maintained its production guidance of 57,000 vehicles for the full year 2024.
Rivian (NASDAQ: RIVN) Stock Performance
RIVN stock plunged 8.05% to $8.40 on Monday. The traders had exchanged hands with 79,816,812 (79.81 million) shares compared to the average daily trading volume of 45.25 million.
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