3 Red Flags for Rivian Automotive's Future
Rivian Automotive (NASDAQ: RIVN) has been a polarizing stock. The bulls praised the maker of electric pickups, SUVs, and delivery vans for producing more vehicles than many other fledgling electric vehicle (EV) makers, and noted that its preorders continued to rise. The bears will point out that Rivian already halved its production target for 2022 from 50,000 to 25,000 vehicles back in March, it's still struggling with supply chain constraints, and its net losses are widening.
Judging by the stock price, the bears have clearly been winning that argument: Rivian's stock is down about 85% from its all-time high last November, and it remains nearly 70% below its IPO share price of $78. It might be tempting to buy Rivian stock at these depressed levels, but three recent red flags indicate it might still be too early to bet on its long-term recovery.
Image source: Rivian.
Source Fool.com
