What's going on?

EV upstart Rivian reported some plodding, underpowered results this week.

What does this mean?

Folks thought Rivian was gearing up for a road race with Tesla back in 2021, when the firm landed the sixth biggest listing�ever on the US stock market. But since then, chronic parts shortages have plagued production and trimmed the EV maker’s wings. What�s worse, last year�s missed production targets seem to have knocked the firm�s faith in the future too: the 50,000 EVs it plans to make this year would double 2022�s total, sure, but that�s still miles below analysts� predictions. To top it all off, the company’s third recall in under two years seriously rattled investors � sinking its stock by 8%.

Why should I care?

Zooming in: Sleight of hand.
The report contained another big red flag: Rivian had nothing to say about the number of drivers pre-ordering its trucks, which it typically reveals every quarter. That could be a ploy to conceal plummeting demand, with either the weakening economy or the long wait for the firm�s EVs to blame. Either way, Rivian needs to get its house in order: competition in the EV space is heating up, and customers won�t hesitate to snag a Ford or GM instead.

For markets: Take me back.
Rivian was the second-worst performer in the entire Nasdaq 100 index last year, suggesting that investors have been fed up with the firm for a while. And to rub salt in that wound, it seems they’re running back to a richer ex: Tesla, the OG of the EV game, which actually turns a profit. Tesla�s shares have already jumped 90% this year, and analysts reckon the �clear leader� of the EV transition might rally even further.