Why Rivian Stock Dropped Today
Rivian Automotive (NASDAQ: RIVN) has garnered investor interest since its initial public offering in late 2021. Its first full year of production was somewhat disappointing, with production volume at less than half its current 50,000 unit annual capacity. But investors just began to push Rivian stock off its recent all-time low with hopes for a 2023 recovery. Shares continued to rise early today, but reversed course with a drop of as much as almost 3% before settling lower by nearly 1% as of 2 p.m. ET.
The drop on Wednesday comes after the release of a study on brand value shows just how far electric vehicle (EV) leader Tesla has risen. That's bad news for Rivian as Tesla prepares to begin production of its Cybertruck that will be Tesla's first direct competition for Rivian. Barron's reported on the study of brand value today, and it shows a big jump for Tesla as the top automotive brand. If that trend continues, it could impact Rivian's plans for the growth of its own electric pickup truck offering.
Source Fool.com
