Rivian Automotive Inc. (RIVN) is having one of those days where everything seems to go wrong at once. Shares slid on Wednesday as investors digested a substantial vehicle recall, a pair of analyst downgrades, and the general malaise dragging down tech stocks across the board. The S&P 500 dropped 0.95% while the Nasdaq-100 fell 1.58%, so Rivian wasn't suffering alone, but its 8.81% decline certainly stood out.
UBS kicked things off by downgrading the stock from Neutral to Sell, though in a somewhat confusing twist, they actually raised their price target from $13 to $15. That's the financial equivalent of saying "this restaurant is terrible, but at least the portions are bigger than we thought." Wolfe Research piled on with its own downgrade from peer perform to underperform, while Piper Sandler maintained a neutral stance but bumped up its price target from $14 to $20. Mixed signals, anyone?
The Recall That Has Everyone Talking
The real catalyst here appears to be Rivian's announcement of a recall affecting nearly 20,000 vehicles. The issue involves a defect that could increase crash risk, which is exactly the kind of headline no automotive company wants to see, especially when you're still working to establish yourself as a credible player in the EV space. For context, when you've only delivered 42,247 vehicles in an entire year, recalling nearly 20,000 represents a significant chunk of your customer base.
Despite the recall drama, Rivian actually delivered some decent operational news. The company shared preliminary fourth-quarter results showing production of almost 11,000 vehicles and deliveries of nearly 10,000. For the full year, those numbers came in at 42,284 vehicles produced and 42,247 delivered, which aligned with their expectations. In other words, they're executing on their production targets, even if the market isn't particularly impressed right now.
What the Charts Are Saying
From a technical perspective, Rivian is showing some clear weakness. The stock is currently trading 13% below its 20-day simple moving average and 1.7% below its 50-day SMA, both signals pointing to short-term trouble. But zoom out a bit, and the picture gets more interesting. Over the past 12 months, shares have climbed 29.72% and remain positioned closer to their 52-week highs than their lows.
The RSI sits at 49.24, which is about as neutral as it gets. No overbought conditions, no oversold panic, just middle-of-the-road momentum. The MACD, however, tells a different story. It's currently below its signal line, indicating bearish pressure. Put those two together and you've got a textbook case of mixed momentum, which probably mirrors how most investors feel right now.
Key levels to watch: resistance sits at $18.00, while support comes in around $15.50. That support level is particularly important given UBS's new $15 price target.