Should You Take a Chance on Rivian Stock After Recent Plunge?

Rivian Automotive’s stock price has taken a big hit recently, leaving some investors wondering if now is the time to buy the dip in Rivian Stock. The electric vehicle startup’s share price is down significantly from its all-time high reached last year as operational challenges and a broader market downturn have weighed on investor sentiment. Here’s a closer look at what’s been going on with Rivian and whether risk-tolerant investors should consider scooping up shares while they’re lower.

In its first quarterly earnings report since going public last year, Rivian cut its production forecast for 2022 in half from 50,000 vehicles to just 25,000. The company cited supply chain issues that have plagued the entire auto industry as the main culprit. Shareholders weren’t too pleased with the downgrade and drove the stock down over 15% the next day.

Rivian also announced it would lay off around 5% of its workforce, showing the company is trying to rein in costs as it works to ramp up production. Getting manufacturing up to scale has proven tougher than expected. All this news has caused some analysts to worry about Rivian’s ability to deliver on its long term plans.

So is Rivian Stock a Buy Right Now?

It’s a risky prospect for sure. With the share price down over 80% from its high, there’s certainly a lot of downside already priced in. But Rivian is still very much in startup mode working to establish itself in a competitive industry. There will likely be more growing pains ahead. Those with a higher risk tolerance and long timeframe may see value in Rivian Stock at these levels if production and delivery targets are eventually met. But there are no guarantees given the challenges. More conservative investors may want to wait for clearer signs of progress first before taking a position.

For those willing to take a chance, only invest what you can afford to lose given the uncertainty surrounding automotive startups. Rivian has promising products and huge potential, but commercializing that potential poses difficulties that could continue pressuring the share price in the near term. For investors with patience, however, a long term holding in Rivian Stock could potentially pay off big if the company succeeds. But as with any early stage company, there are simply no guarantees.