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Why Rivian shares fell again today

Rivian car industry (NASDAQ: RIVN) Stocks have been in freefall lately. That continued today as seemingly bad news emerged from electric vehicle (EV) manufacturers. Even though there’s no real negative news from Rivian itself, its shares are down more than 50% in the past three months.

Today’s drop appears to be more of the same. Bigger picture EV news that implies a continued decline in demand seems to be hitting Rivian particularly hard. Rivian shares fell 5.1% to start this trading week at 11:45 a.m. ET on Monday.

EV makers are cutting back

One factor that recently hit Rivian stock was the decision of Ford Motor Company to drop prices on its F-150 Lightning models by as much as $5,500. That vehicle is one of the few direct competitors to Rivian’s R1T full-size electric pickup.

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The downward momentum continued today as EV led Tesla told employees it would lay off at least 10% of its global workforce. Tesla delivered about 9% fewer vehicles in the first quarter compared to the first quarter of last year, disappointing investors. But Rivian’s first-quarter deliveries met expectations and the company says it is on track to produce 57,000 electric vehicles this year.

That’s about the same production volume as last year, as the company faces some delays in implementing upgrades in preparation for the next generation of R2 models. The cheaper R2 SUV is expected to be available in early 2026.

That is still relatively far away, and the demand in the EV market is currently under discussion. Ford’s price cuts were intended to reduce unsold inventories. And Tesla’s downsizing doesn’t mean demand increases either. But Rivian has thus far established its unique brand and has a path to expand its market with lower-priced vehicles. Investors who foresee a successful journey toward that goal would do well to buy Rivian stock at this all-time low.

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Howard Smith has positions in Rivian Automotive and Tesla. The Motley Fool holds and recommends positions in Tesla. The Motley Fool has a disclosure policy.

Why Rivian Stock Dropped Again Today was originally published by The Motley Fool

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