Why Rivian stock fell again today

rivian cars (RIVN -5.64%) Stock prices have been in free fall recently. It continued today as seemingly bad news from electric vehicle (EV) manufacturers continued to be released. Despite no negative news from Rivian itself, its stock price has plummeted more than 50% in the past three months.

Today’s decline seems even more likely. The bigger-picture EV news, which suggests a continued decline in demand, appears to hit Rivian particularly hard. Rivian shares were down 5.1% to start the trading week as of 11:45 a.m. Monday.

Electric car companies shrink

One of the factors that has hurt Rivian stock recently is: ford motor company Price reduction on F-150 Lightning models by up to $5,500. The vehicle is one of the only vehicles that can compete directly with Rivian’s R1T full-size electric pickup truck.

The EV leader continued its downward trend today. tesla It told employees it would lay off at least 10% of its global workforce. Tesla disappointed investors by delivering about 9% fewer vehicles in the first quarter compared to the first quarter of last year. But Rivian’s first-quarter deliveries met expectations, and the company said it expects to produce 57,000 EVs this year.

This is roughly the same production volume as last year, as the company is experiencing some delays in implementing upgrades to prepare for the next-generation R2 model. The low-cost R2 SUV is scheduled to be released starting in 2026.

There is still a long way to go, and the current demand in the electric vehicle market is also questionable. Ford’s price cuts were intended to reduce unsold inventory. And Tesla’s downsizing doesn’t mean demand is accelerating. However, Rivian has established its own unique brand and has a path to expanding the market with low-priced vehicles. Investors who anticipate a successful journey toward this end would do well to purchase Rivian stock at all-time lows.