Rivian sign logo at headquarters in Silicon Valley. Rivian is an American automaker and automotive technology company. - Palo Alto, California, USA - 2020
Since May 16, 2022, the Rivian stock price has traded within a narrow price range of between $24 and $40. During that time, the stock price traded within tighter price margins of between $29 and $35. However, despite the past seven months trading horizontally, the company has seen its value drop by 70 per cent year-to-date. This is partly due to its price plummeting in the first five months of the year, where it had almost lost 80 per cent of its value at some point.
Despite dropping by 70 per cent year-to-date, analysts are still positive about the company, one year after delivering its groundbreaking R1T electric pickup to customers. The company still has a big money cushion from last year’s IP listing, and its pivot from high-end adventure vehicles to more mainstream models has continued to play a significant role in the continued positive sentiments from its investors.
However, despite these investments, the company has been plagued with problems, such as financial losses, as it continues to invest in new facilities for its production. The company has also been affected by the supply chain constraints that have slowed down its ramp-up despite the huge investment, creating a scenario where the company continues to haemorrhage money without meeting its yearly targets.
As seen from the above fundamental analysis. Rivian has been impacted by factors that have been beyond its control for the entire year, which has resulted in the company’s value dropping by 70 per cent.
However, based on recent investments and the current price action, I expect the bullish trend to continue for the next few trading sessions. It is highly likely that we might see its price finally breaking and trading above the $40 price level before the end of the year. However, a trade below $25 will invalidate my bullish analysis.
This post was last modified on Dec 05, 2022, 14:15 GMT 14:15