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 Shares of electric vehicle manufacturer Rivian fell more than 15% in after-hours trading Wednesday after the company announced it would be laying off 10% of its salaried workforce in response to an increasingly difficult market. Rivian cited “economic and geopolitical uncertainties and pressures” when announcing the 10% staff reduction, and founder and CEO RJ Scaringe said in a press release that while they “firmly believe in the full electrification of the automotive industry,” they recognize the short-term “challenging macro-economic conditions.” Rivian also announced Wednesday its EV production would be below the forecast, with about 57,000 vehicles being produced in 2024—about the same as were produced last year and below the expected 81,700 vehicles, according to Reuters. Rivian’s stock closed down around 3.2% at $15.39 on Wednesday afternoon, before tumbling some 17% at times in after-hours trading—as of 6:40 p.m. EST its share price was $13.04, down 15.3% from the close. The layoffs announced Wednesday will be Rivian’s third round since July 2022, TechCrunch reported. That July it cut 6% of its workforce, and it cut another 6% last February. Rivian was founded in 2009, offers an electric truck and electric SUV and is expected to launch its third, more affordable model—the R2—in March. Tesla CEO Eldon Musk said Rivian's current trajectory “looks like it is gearing up for bankruptcy in about six quarters.” “Maybe that trajectory will change, but so far it hasn't,” he added. “Their product design is not bad, but the actual hard part of making a car company work is achieving volume production with positive cash flow,” Musk said of the company. In January, Rivian stock fell amid news of its lagging deliveries and concerns around flagging demand for electric vehicles—though Tesla stock was rising at the same time. Rivian’s shares also dropped last October after news of an earlier-than-expected bond issuance sparked concern about its financial health, though Scaringe pushed back at the time, telling Reuters the issuance was to strengthen Rivian’s balance sheet ahead of more costly borrowing. My take: Rivian and none of the EV newcomers have a long-term future. Only Tesla and the legacy carmakers will survive. Too bad Georgia and North Carolina didn't get the memo when awarding billion-dollar-plus incentive packages to Rivian and VinFast respectively. VinFast, the Vietnamese EV manufacturer, reported a 4th-quarter net loss of $650.1 million

Here's what could happen to Rivian shares next.

Rivian is getting dangerously close to dropping below an $8B market cap, currently priced at $8.56. They have moved firmly out of large-cap territory and deeper into mid-cap territory. Each dollar drop in the stock price corresponds to roughly a billion-dollar decrease in market capitalization. Today, it is the second most traded stock, behind Tesla, which has now dropped to $164.53. Unless some miraculous dynamics come into play, I think we will see a continued decline in this market sector — with Rivian possibly hitting the bottom and Tesla potentially dropping to around $100. #automotive #ev #automotivestocks

I frequently perform calculations on historically poor performing stocks to determine what I call their 'zero landing.' I ran Rivian against my models, and based on the average annual rate of decline derived from the past five years' performance, it would theoretically take approximately 3.7 years for the stock to reach a negligible value close to zero if it continued to decline at the same rate. Now, remember, this is solely based on the current rate of decline (straight-line math) and is obviously impacted — accelerated or decelerated — by multiple market factors, investor sentiments, M&A activity, etc. I also look for the 'dollar threshold,' the point when they drop below that amount and begin trading as a penny stock, akin to Fisker, because at that point, their demise can greatly accelerate. In this case, that number is 1.28 years. Notice that the timeframe for the new vehicle launches is 2+ years out, so while very well received by the general public and investors, this falls outside the 1.28-year sub-dollar threshold. I would watch for the short positions on this stock to build rapidly in the coming year. The path to monetization for Rivian is so clear to me; I can't believe it's not evident to others. It's perplexing. Get outside your bubble, folks, and cut through the noise. Perspective is everything. #automotive #ev #automotiveindustry #automotiveinvesting

🚀 Rivian stock soars 14% as AT&T signs fleet deal Rivian and AT&T (T) have unveiled an exciting deal where the telecom giant will purchase Rivian vans and R1 vehicles for its commercial fleet. Beyond vehicle acquisition, AT&T will exclusively provide internet connectivity for all of Rivian’s commercial vehicles in the U.S. and Canada. Rivian’s stock has been on an impressive upward trajectory, with a climb of over 34% in the past three months and nearly 20% for the year. Don’t miss out on important market updates. Follow Compoyo for more insights🦉and visit compoyo.com ___ #compoyo #trading #tradingforex #tradingstrategy #tradingsignals #tradingstocks #tradingsetup #rivian #rivianr1t #electricvehicle #electricvehicles #stockmarket #stockmarketeducation #stockpicking #tradingview #stocks #stockstowatch #stocktrading #stockmarketnews #stockanalysis #tradinganalysis #tradingeducation #stocksignals #tradingaccounts #att

Rivian has just encountered a concerning technical milestone known as the 'Death Cross.' This occurs when the stock's 50-day moving average (18.71) falls below its 200-day counterpart (18.82), often signaling upcoming market challenges. On a positive note, despite facing stiff competition in the rapidly evolving electric vehicle sector, Rivian has demonstrated resilience through its revenue growth and earnings management. However, the Death Cross introduces a layer of uncertainty, underscoring the importance of cautious strategy for investors. I anticipate this could push its value below the $14 mark, potentially leading to increased short selling. Essentially, this could start a downward spiral for the stock. It will be interesting to see if Rivian's unveiling of a smaller and (mercifully) cheaper R2 SUV on March 7 will have any impact on the stock price. If history is any indicator, it just might, so the questions is this: how cheap can you get into Rivian to ride that pop (if it happens) for maximum gains? It is anticipated that this new variant might be available as early as 2026, with a price range estimated between $45,000 and $50,000. But can Rivian last that long with the current rate of cash burn? #ev #automotive #automotiveindustry #evtrucks

Rivian (RIVN) to release critical Q2 earnings: Here's what to expect - https://lnkd.in/g-SDjS9s It’s EV earnings season again, and Rivian (RIVN) is set to release critical Q2 2024 earnings on Tuesday, August 6, 2024, after the bell. Rivian has been aggressively cutting costs in an effort to achieve a gross profit by the end of the year. Here’s what to expect from

Rivian will drop below $10, and when that happens, the stock is likely to take a serious plunge (see my earlier comments here: https://lnkd.in/eY6KZYaK). I say this with a high degree of confidence based on my ongoing market observations. The recent failures of Fisker and the downward pressure on Tesla are weighing heavily on its stock valuation. Let me remind everyone that we're approaching more realistic valuations for Tesla, and poor EV sales could drive the stock price down further, impacting the P/E ratio. I think Rivian, as much as I love their vehicles, is poised for a hard fall. In the flesh, fabulous vehicles (which most can't afford). On paper, huge money suck (for the same reason + limited production capacity). Someone could buy them, but why not wait for a major devaluation? #automotive #ev #automotiveinvestment #marketpressure

Rivian's joint-venture with Volkswagen Group is a start to supporting capital needs, yet more importantly may signal that it can be viewed as an automotive software supplier vs. pure OEM, potentially opening wider, more profitable revenue streams. Rivian may burn $13 billion of cash through 2027, making access to capital imperative for a business with default risk above 17%, which may consume more than $40 billion before turning a profit. https://lnkd.in/en4yjF7u