Rivian Automotive skids lower after Cantor Fitzgerald warns on valuation, EV truck competition
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Rivian Automotive (NASDAQ:RIVN) fell sharply in early trading after Cantor Fitzgerald downgraded the automobile stock to a Neutral rating on a call tied to valuation.
Analyst Andres Sheppard pointed to the recent outperformance in Rivian's share price, and raised some concerns on the increased EV truck competition from General Motors (GM), Ford (F), and the Tesla (TSLA) Cybertruck, which is reported to have more than 1.2M reservations on the books.
"With the recent surge in share price, and since Rivian's stock has increased more than 49% YTD and traded up to $27, it now appears properly valued, and thus we are becoming more conservative in the short term."
Rivian Automotive (RIVN) is scheduled to report earnings on August 8. The electric vehicle maker is expected to come close to its first billion-dollar revenue report and record EPS of -$1.39. RIVN has reported a narrower loss than anticipated in its last five quarters. Options trading implies a double-digit swing in share price after the earnings report drops.
Shares of RIVN were down 4.25% at 10:26 a.m. on Tuesday.
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