Rivian Hits Rough Patch: Production Halts, Management Shakes Up Stock – Rivian Automotive (NASDAQ:RIVN)

Rivian Automotive Inchis Exactly the stock is under serious pressure, down 38.32% year to date. The EV maker’s bumpy ride isn’t just on the road; it is also in the charts, where the technical indicators paint a rather gloomy picture.

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Currently trading at $13.07, Rivian’s stock price is below its eight-, 20-, and 50-day simple moving averages, signaling a strong bearish trend. The recent decline of 24.86% in just one month suggests that investors are far from convinced about Rivian’s short-term prospects.

Adding fuel to the fire, Rivian’s production woes are once again making headlines. The company recently stopped production of its delivery vans for Amazon.com Inc AMZN due to lack of parts.

While Rivian assures the hiccup won’t affect its SUV and truck lines, investors are wondering if the company can keep up with Amazon’s massive order of 100,000 pickup trucks by 2030.

Amazon, which owns a 16 percent stake in Rivian, played down the disruption, but the market is clearly not buying the optimism.

Further compounding Rivian’s problems is the loss of its head of production, Tim Fallonat Jeep.

With Fallon heading towards Stellantis NV STLA as head of North American manufacturing, Rivian’s leadership change could signal more turbulence ahead. The company has already revised its production estimates for 2024 from 67,170 to about 50,000 vehicles and cut its workforce by 11%.

Also read: Rivian head of production Tim Fallon joins European carmaker Stellantis

Technically, Rivian’s stock doesn’t look any better.

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The MACD (Moving Average Convergence Divergence) indicator is at a negative 0.56 and with an RSI of 38.54, the stock looks oversold.

However, the Bollinger Bands suggest some hope, with a potential bounce into the lower band.

But for now, Rivian remains bearish, with investors likely holding off until the electric vehicle maker shows it can navigate the current hurdles.

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Photo: Courtesy of Rivian