What's Going On With Rivian (RIVN) Stock?

Rivian Automotive Inc RIVN shares are trading lower by 7.5% to $12.17 during Friday’s session. The stock is trading lower as major indexes pull back following recent strength.

What Happened This Week: The Federal Reserve’s unexpected decision Wednesday to cut interest rates by 50 basis points at its September Federal Open Market Committee (FOMC) meeting saw markets Rivian stock and broader markets gain sharply Thursday.

The rate cut lowers the federal funds rate to a range of 4.75% to 5%, marking the first cut in over four years and signaling a more aggressive monetary easing cycle than previously anticipated.

This policy shift has major implications for Rivian, a leading electric vehicle (EV) manufacturer, and its investors, who have reasons to be more optimistic about the company’s financial outlook and growth potential.

Read Also: Rivian Introduces $100K Tri Max Variant Of R1S Electric SUV

What Else: Rivian, despite its potential and strong brand in the EV market, remains in its growth phase and has yet to turn a profit. While the Fed's rate cut reduces borrowing costs, investors likely reassessed the company's significant cash burn and longer path to profitability.

Even with lower interest rates, Rivian still faces steep capital expenditures related to manufacturing expansion, supply chain improvements and R&D, particularly in the competitive EV space.

The Federal Reserve’s Summary of Economic Projections revealed upward revisions to unemployment rates through 2025, signaling potential economic softness ahead.

Investors may fear that slower economic growth could dampen consumer demand for higher-priced luxury electric vehicles like Rivian's R1T truck and R1S SUV, creating headwinds for revenue growth despite favorable financing conditions.

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Is RIVN A Good Stock To Buy?

Wall Street analysts view Rivian Automotive on the whole as an Outperform, given the history of coverage over the past three months. Colin Langan from Wells Fargo in Rivian Automotive is the most optimistic, expecting a 80.0% rise in the stock in the coming year.

But looking at how the market as a whole thinks of the stock, you can reference historical price action for views on whether investors feel strongly about the stock one way or another. In the past 3 months, Rivian Automotive rose 19.48%, which indicates that opinion improved on the business and how attractive it is to own based on either its stock price, or underlying fundamentals, like revenue, which rose 3.3% over the past year.

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RIVN has a 52-week high of $24.87 and a 52-week low of $8.26.