Why Rivian Shares Are Sinking Today

Rivian Automotive (NASDAQ: RIVN) shares are bucking an uptrend in electric vehicle (EV) stocks Monday. There are a couple of reasons for that. While some EV names are riding bullish sentiment on Wall Street, Rivian's shares dropped by as much as 5% in early trading. As of 12:40 p.m. ET, the stock was still down by 2.4% for the day.

Rivian shares have now dropped by about 30% year to date. The company has some unique features among start-up EV makers, though. In addition to offering fully electric consumer pickup trucks and SUVs, Rivian makes commercial delivery vans. That market looks to be growing quickly, but its consumer business is what has shares dropping Monday.

The (NASDAQ: TSLA) Model Y is the best-selling vehicle in the world now. That smaller SUV may not be in direct competition with Rivian's R1S for some EV buyers. But on Monday, Tesla announced it was cutting its prices in the U.S. for two versions of the Model Y by $1,000 for the remainder of February. That may entice some potential R1S customers to consider the Model Y instead.

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Source Fool.com