Why Rivian Shares Approached Another New Low Today
Rivian Automotive (NASDAQ: RIVN) stock has been hovering near its all-time lows recently, and after a brief pop this morning, it slid back down to near $16 per share. An early 4.5% pop turned into a drop of 0.7% as of 2:25 p.m. ET. At the low of the day, Rivian shares nearly hit the all-time intraday low level of $15.84 per share it reached last week.
Two things may have turned investors negative on Rivian shares today. First, a major new competitor for its electric pickup truck was just revealed at the popular Consumer Electronics Show (CES) in Las Vegas. The new electric Ram truck from global automaker Stellantis will be launching in the coming months. Production will begin next year on the Ram 1500 Revolution that the automaker is using as the base for its electric vehicle platforms. It will directly compete with Rivian's R1T and other high-end battery electric pickup trucks.
Investors also may have seen an article published by Barron's today that highlights Rivian along with other stocks that performed poorly in 2022. It notes a study looking back to 2006 that showed among the top 1,000 U.S.-based companies by market capitalization, the worst performers in a given year underperformed the broader market by an average of 4 percentage points over the following 12 months. Rivian was among 15 worst-performing stocks in the Russell 1000 index in 2022.
Source Fool.com
