Why Rivian Stock Plunged in April
Extending its losses from March, Rivian Automotive (NASDAQ: RIVN) stock plunged by another 17.2% in April, according to data provided by S&P Global Market Intelligence. The electric vehicle (EV) stock is now down by almost 33% since March as of this writing. Turns out, investors and analysts alike are growing cautious about Rivian ahead of its first-quarter earnings release.
The young automaker made investors jittery right as April kicked off when it revealed that it had produced 9,395 EVs and delivered 7,946 units in the first quarter.
While those numbers were significantly higher year over year, Rivian's production fell almost 6% sequentially while its deliveries dropped by about 1%. That poured cold water on investors' hopes, as did the company's assertion that it was "on track" to deliver 50,000 units in 2023. Investors had been expecting more, especially after Bloomberg reported that Rivian management had told employees during an internal all-hands meeting that the company could produce as many as 62,000 EVs this year. Although a Reuters article later quoted a Rivian spokesperson as saying that the 62,000 figure had been "taken out of context," investors expected more aggression from Rivian on the production front this year, especially after its underwhelming output in 2022.
Source Fool.com
