24/7 Wall St. Insights
- Rivian Automotive Inc. (NASDAQ: RIVN) stock has collapsed again for several reasons.
- Also: 2 Dividend Legends to Hold Forever.
After a brief recovery in July, Rivian Automotive Inc. (NASDAQ: RIVN) stock collapsed again and went down 42% for the year, while the market was 19% higher. Its problems are the same ones it has had since its founding: It is too small to factor in what has become a problematic electric vehicle (EV) market, and its losses are stupendous.
What’s happened recently?
Rivian had a fire on one of the lots where it stores its vehicles. The cause is under investigation.
Rivan recently stopped production at one of its plants. The plant makes trucks for major partner Amazon. The reason given was a shortage of parts. Amazon owns 16% of Rivan’s inventory, and its total order for Rivian vehicles could hit 100,000.
Rivian’s production chief, Tim Fallon, quit and went to Jeep, weakening Rivian’s management structure. He will lead Jeep’s EV business, which competes with Rivian.
Next, Rivian had a challenging second quarter. Vehicle production was only 9,616, a staggeringly small number.
Finally, the company lost $1.5 billion in the most recent quarter, adding to its string of billion-dollar loss quarters.
Three EV Stocks With Troubles Ahead
Is Your Money Earning the Best Possible Rate? (Sponsor)
Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.
However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.
There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
