Why Rivian Stock Is Sliding Premarket Today

Rivian Automotive, Inc. RIVN shares fell in premarket trading on Tuesday, reflecting the broader market sentiment.

The Irvine, California-based company is set to lose its position in the Nasdaq 100 Index, which comprises the top non-financial tech stocks traded on the Nasdaq exchange. This change will take effect on Tuesday before the market opens, as announced by Nasdaq on June 12.

Rivian’s removal from the index comes as a result of its weighting falling below 0.1% for two consecutive months. The index determines company weightings based on market capitalizations. Interestingly, Rivian was added to the index during Nasdaq 100’s annual rebalancing in December 2022.

Despite the overall recovery of most stocks this year following a dismal performance in 2022, Rivian continues to struggle. The stock is down approximately 19% year-to-date. Weak demand due to economic uncertainties and production challenges have weighed heavily on the electric vehicle startup.

Being removed from the index will result in the stock being excluded from funds that track the Nasdaq 100 Index.

ON Semiconductor Corp. ON will replace Rivian in the index.

In premarket trading, Rivian fell 0.94% to $14.74%, according to Benzinga Pro data.

See Also: Best Electric Vehicle Stocks