Rivian Stock (NASDAQ:RIVN)
Rivian stock (NASDAQ:RIVN) price dropped by 7.40% on Friday morning. As of 12:22 PM EST, a loss of 7.5% has been reflected in the Rivian stock. The Nasdaq Composite Index, heavily weighted toward technology, was down 2.3% at the time.
What’s the Reason?
Rivian stock was under pressure on a variety of fronts. One explanation is that Friday saw a general decline in the market. High-volatility equities like Rivian often fall on bad days on Wall Street.
Since gasoline-powered cars are the main rivals of EVs, the 3% drop in West Texas Intermediate crude oil price to $86.06 is negative news for the EV industry.
According to a poll by the University of Michigan, consumers’ projections for inflation in one year have increased to 5.1% from 4.7%. To combat inflation, the Federal Reserve has raised interest rates. Still, investors are nervous that it may need to do so again in 2023, raising the prospect of another economic downturn.
What’s Next?
For Rivian, the main obstacles will revolve on raising output and stimulating more demand for its cars. Most car buyers will feel the pinch of higher borrowing rates, but that’s a challenge all automakers face.
The level of volatility seen by Rivian stock on Friday is typical for this firm. The company’s earnings report will be more relevant to investors after the market closes on November 9. There will be considerably more at stake than a single day’s worth of speculative trading movements when we receive an update on fourth-quarter output and the present backlog of demand at that time.
Featured Image- Megapixl @ Viewimage
Author Shariq Khan 
