Why Rivian Is Heading Toward a Double-Digit Drop This Week
Rivian Automotive (NASDAQ: RIVN) shareholders are having a rough week, with the stock hitting its all-time low price level. As of Thursday afternoon, Rivian stock has dropped nearly 15% this week, while the technology-filled Nasdaq Composite index has only declined about 2%, according to data provided by S&P Global Market Intelligence. The question is whether that makes it a good time to buy or add shares, or if this week's decline is a sign of more to come. The answer just may be yes to both.
First, Rivian disappointed investors with its 2023 full-year production forecast it released last week. The company said it is throttling back some production plans and expects to manufacture 50,000 electric trucks and vans this year. That's double what it did in 2022, but it came up short of what analysts expected. The company followed that with an announcement for a new convertible bond offering to raise up to $1.5 billion.
Source Fool.com
