Why Rivian Automotive Stock Dropped Today
Electric truck builder Rivian Automotive (NASDAQ: RIVN) short-circuited Monday morning in response to a lowered price target from investment bank Mizuho. As StreetInsider.com reports, the price-target cut actually came out on Friday last week but was reported today as a new cut on TheFly.com.
Mizuho cut its prediction for Rivian's stock price, one year out, from $80 per share to just $70, and as of 1:20 p.m. ET, the shares are down 4.2% in response.
By now, everyone is aware that curbs on freedom of movement in Shanghai, designed to halt the spread of Covid-19, have severely cut access to automotive parts and prevented Tesla's Chinese gigafactory from operating at full capacity. As Mizuho points out, though, the impact of parts shortages isn't limited to Tesla but is affecting Rivian as well.
Source Fool.com
