What Happened?
Shares of electric vehicle manufacturer Rivian (NASDAQ: RIVN) fell 5.1% in the afternoon session after its competitor Ford announced a major pullback from its electric vehicle (EV) strategy, which amplified investor concerns about waning consumer demand and the financial health of the EV market.
Ford revealed it was ending production of its all-electric F-150 Lightning, a direct competitor to Rivian's R1T, and shifting investment toward more efficient gasoline and hybrid vehicles. This move was attributed to financial losses and a changing market reality. The broader sentiment for EVs was also dampened when the European Union announced it would step back from a plan to ban emissions from new vehicles by 2035.
The shares closed the day at $17.91, down 4.1% from previous close.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Rivian? Access our full analysis report here.
What Is The Market Telling Us
Rivian’s shares are extremely volatile and have had 32 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock gained 2.8% on the news that analysts reacted positively to its inaugural "Autonomy & AI Day," where it revealed plans for a custom-designed processing chip and a new subscription service for its self-driving features.
The electric vehicle maker announced it was developing its own proprietary chip, the Rivian Autonomy Processor, reducing its reliance on outside suppliers. This move signaled a strategic shift toward making more of its own key technology. The company also unveiled a new subscription service called 'Autonomy+' for its hands-free driving package, creating a new stream of revenue. This service was priced at a $2,500 one-time fee or $49.99 per month. Following the event, several analysts expressed increased confidence in the company's strategy, with some raising their price targets on the stock.
Rivian is up 35.1% since the beginning of the year, and at $17.91 per share, it is trading close to its 52-week high of $18.70 from December 2025. Investors who bought $1,000 worth of Rivian’s shares at the IPO in November 2021 would now be looking at an investment worth $177.75.
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