HomeMarket News Morgan Stanley Issues Warning on Rivian (RIVN) Stock Concerns Arise as Morgan Stanley...

Morgan Stanley Issues Warning on Rivian (RIVN) Stock Concerns Arise as Morgan Stanley Issues Warning on Rivian (RIVN) Stock

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RIVN Stock - Morgan Stanley Issues a Warning on Rivian (RIVN) Stock

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Rivian (NASDAQ:RIVN) stock is sliding lower on Thursday after Morgan Stanley analysts issued a warning for investors in the electric vehicle (EV) company.

Morgan Stanley’s analysts reiterated their “overweight” rating for RIVN stock today. For comparison, the analysts’ consensus rating for the company’s shares is moderate buy based on 23 opinions.

Unfortunately, that update comes with a warning traders will want to keep in mind. Here’s what Morgan Stanely said about RIVN in a note to clients obtained by CNBC.

“While consumers love the R1 and investors would love a ‘non-Tesla’ way to play the long-term EV theme, Rivian’s results continue to largely disappoint, whether on volume or margin progression. … The EV landscape has changed decidedly for the worse since Rivian’s November 2021 IPO, yet – tweaks aside – the company’s strategy appears to have been largely unchanged.”

RIVN Stock Falters Following Layoffs

Investors will also note that Rivian announced layoffs for 10% of its salaried workers today. This move occurred after the company provided production estimates of 57,000 units in 2024, falling short of Wall Street’s estimate of 80,000 units.

Rivian attributed the reduced production target and job cuts to weaker demand for its EVs, coupled with an uncertain economy and high interest rates.

As of Thursday morning, RIVN stock is down 27.4%, with more than 81 million shares traded. For the record, its daily average trading volume is about 33.7 million shares.

Amidst this development, there’s a plethora of other stock market news worth exploring including the performance of Nvidia (NASDAQ:NVDA), Novavax (NASDAQ:NVAX), and Super Micro Computer (NASDAQ:SMCI) stock. Stay updated on all the news at the following links!

Additional Thursday Stock Market News

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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