The Rivian (NASDAQ: RIVN) stock price crashed by more than 13% on Wednesday as buyers accused the firm of bait and switch. The shares are trading at $53.5, which is close to its lowest level on record. It has fallen by over 70% from its all-time high.
Rivian bait and switch
At its peak, Rivian was one of the biggest electric vehicle companies in terms of market cap. It was even bigger than companies like Ford and General Motors that sell millions of cars every year.
Are you looking for fast-news, hot-tips and market analysis?
Sign-up for the Invezz newsletter, today.
Recently, however, the Rivian stock price has collapsed and its market value has cratered to over $48 billion. This means that the company’s investors have lost over $60 billion in the past few months.
The RIVN stock price crashed hard this week as the company unveiled new pricing for its products citing the rising inflation. It hiked its prices by as much as 20% for the RIS SUV and by 17% for its R1T. This means that some cars prices have gone up by more than $15,000. That is a significant amount considering that other EV companies like Tesla and Ford have not announced major price increases
The stock also dropped after it emerged that many buyers have started canceling orders at an alarming rate. In an online poll, more than 1,700 customers with preorders said that they were canceling their order while another 1,100 were still deciding.
Rivian also announced weak deliveries numbers. It produced more than 1,000 cars in 2021 and delivered 920 of them. The stock also crashed after Ford announced that it will run its EV and ICE cars separately.
The next big catalyst for the stock will be its upcoming earnings, which are scheduled for the 10th of this month. Analysts expect that the company made $60 million this month while its loss per share came at $1.70.
Rivian stock price forecast
The four-hour chart shows that the RIVN stock price has been in a strong bearish trend in the past few months. A closer look reveals that it is a few points above the lowest level on record. The shares are below the 25-day and 50-day moving averages. Therefore, the path of the least resistance for the shares is lower, with the next key target being at $40.
Where to buy right now
To invest simply and easily, users need a low-fee broker with a track record of reliability. The following brokers are highly rated, recognised worldwide, and safe to use:
- Etoro, trusted by over 13m users worldwide. Register here >
- bitFlyer, simple, easy to use and regulated. Register here >
