Slowing In The Fast Lane

Image source: Rivian

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 listingever on the US stock market. But since then, chronic parts shortages have plagued production and trimmed the EV maker’s wings. Whats worse, last years missed production targets seem to have knocked the firms faith in the future too: the 50,000 EVs it plans to make this year would double 2022s total, sure, but thats 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 firms EVs to blame. Either way, Rivian needs to get its house in order: competition in the EV space is heating up, and customers wont 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. Teslas shares have already jumped 90% this year, and analysts reckon the clear leader of the EV transition might rally even further.

Originally posted as part of the Finimize daily email.

The top 2 financial news stories in 3 minutes. Join over one million Finimizers

Read next

The Highs and Lowes

Sign up to Finimize

Get the two most important global financial news stories each day. Sent at midnight UK time.

Get started with one email a day

The top financial news stories in 3 minutes.