Why Rivian Stock Fell 18% in August After a Big July Rally
After rallying 66% in July, Rivian Automotive (NASDAQ: RIVN) stock slammed on the brakes in August and fell 17.8%, according to data provided by S&P Global Market Intelligence.
The electric vehicle (EV) manufacturer upped its full-year production guidance last month, tried to convince investors that it has a visible path to profitability, and got a lot of love from analysts, with at least eight analysts bumping up their price targets on Rivian stock. The markets, though, couldn't find a reason to justify a higher valuation for the EV stock.
Rivian upgraded its 2023 production guidance by 2,000 units to 52,000 units in early August. That may seem insignificant, but not when you consider that Rivian produced fewer than 25,000 EVs in 2022. Also, low production has been the biggest growth hurdle for the company so far, so any outlook upgrade could indicate a turnaround and should have ideally sent the stock flying.
Source Fool.com
