Rivian (RIVN) stock is rising after the company announced plans to halt construction of a new factory in Georgia, a move Trust calls a “wise decision.” The company also announced three new EV models on Thursday, most notably the introduction of a lower-priced model, the R2, priced at $45,000.
Yahoo Finance anchors Brad Smith and Seana Smith break down Rivian's latest developments in the context of other headwinds like cash flow and consumer demand.
For more expert insights and the latest market trends, click here to watch the full episode of Yahoo Finance Live.
Editor's note: This article was written by Nicholas Jacobino
video transcript
Brad Smith: Another trend ticker we're tracking here this morning is RIVN stock Rivian. About 5% higher. They announced plans to halt construction of a new factory in Georgia. But the bigger news here is that they have introduced a new EV model. Get praise from the streets.
The correct argument is that, considering the current capital environment, it is a wise decision to shut down new factories. And he told RBC, “Rivian is creating a truly unique brand identity here.” Okay. As for the details, we talked about this a little bit yesterday, but this is basically on the “Yahoo Finance” platform where he was one of the top trending tickers for two days in a row, so R2 is a new all-new medium size. The focus here is on performance, features, practicality and a five-seater package. And the R3 is a midsize crossover that they call dimensionally tidy.
I've never heard that explanation. But Rivian found a way. And R2 pricing is expected to start around $45,000 here.
Sheena Smith: This was a dramatic rise yesterday. Biggest profit we've seen so far. RBC analyst Tom Ryan, you briefly mentioned some of his comments at the beginning. But he was also saying that some of the gains we saw yesterday were due to the fact of short covering here, explaining some of the pop again that we're seeing. It rose further in pre-market trading today to nearly 6%.
However, you should keep in mind that this stock is under a lot of pressure. The stock price has fallen more than 50% this year. I know we've discussed Rivian's funding concerns many times. Furthermore, future consumer demand for the company's products has been weighing on the stock's performance since the beginning of the year.
Over the past six months, we've seen a decline of only about 46%. Yesterday's announcement certainly caused some excitement, at least on the streets. We're looking at that share, and we're seeing the stock price skyrocket. But again, look at the year-to-date performance and look at the past six months' performance on the screen. This stock price is at a very low level compared to previous years. We traded before.
Brad Smith: Yeah. That's the classic “wump, wump” chart pattern.
