KEY POINTS

  • After recent SEC filings, Rivian stock fell.
  • More bad news from the EV firm in 2022 is possible.

What’s going on with Rivian stock

Following its fourth-quarter and full-year 2021 financial statement on March 10, shares of electric car start-up Rivian (NASDAQ:RIVN) stock fell sharply. Investors were particularly unimpressed with the operational update and 2022 production guidance. Since then, the stock has recovered some ground, but a recent Securities and Exchange Commission (SEC) filing has investors worried once again. That caused stocks to plummet by 9.33% at the close on Tuesday.

So what

Rivian revealed several reasons for lowering its 2022 manufacturing volume forecast in its most recent quarterly filing. Furthermore, even though the firm claims it can produce 50,000 cars annually, it only expects to make 25,000 in 2022.

The company pinpointed challenges, including a planned 10-day shutdown to enhance manufacturing lines, logistics constraints, increased COVID-19 cases caused by the omicron variant’s spread, and even severe winter weather at its Illinois plant.

The company updated its Securities and Exchange Commission filing on February 9. In this latest SEC document, Rivian increased the list of threat elements. “The conflict in the Ukraine, fuel and energy prices, regulatory requirements and incentives, [and] competition” would all impact demand for Rivian’s products, according to the firm.

Now what

With geopolitical conflict continuing and inflation rising, the headwinds could result in a further decrease in production guidance. At the very least, Rivian has stated that rising raw material expenditures are a significant issue. However, following an unsuccessful attempt to increase product prices even for customers who had made reservations, Rivian reversed its suggestion.

The company will now have to pay for these fees, which will boost its results even further. Some investors are anticipating any future negative news from the firm. If the stated headwinds cause another reduction in Rivian’s manufacturing outlook or if rising expenses significantly damage the bottom line, there may be more selling pressure for the stock.

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