The 0.37% drop in the price of Rivian in premarket trading has reignited bearish Rivian stock price predictions. This comes after yesterday’s slight uptick that saw a rejection at the 28.78 resistance, following a gradual slump in the stock’s price.
The previous attempts at recovering from the all-time lows at 20.22 halted following the two-day decline seen on 31 May and 1 June. Since hitting the 31 May high at 32.60, the stock has lost ground due to some negative fundamental triggers.
The first of these triggers came when the company announced it was pushing back on its R1S electric SUV deliveries. Early buyers were forced to digest unsavoury news that the June/July scheduled delivery of the R1S SUV would be delayed by several months, with deliveries now expected to occur as late as December 2022. The first batch of this vehicle was to be delivered in August 2021. Instead, there have been multiple delivery pushbacks since then, a situation that buyers and investors alike do not find amusing. The company blames the shortage of semiconductors and other necessary parts for the brand for the delays.
The second trigger for the negative Rivian stock price predictions comes from a recent interview granted by Elon Musk to the Tesla Owners Silicon Valley media outlet. In this interview, Musk said that he believed the Lucid Group and Rivian Automotive would go bankrupt unless something changed significantly. Rivian currently loses money on its vehicles, with industry experts such as Sandy Munro saying that its R1T and R1S vehicles are significantly underpriced.
Will the company raise prices from current levels to $100,000 as suggested by Munro, and would this lead to bullish Rivian stock price predictions down the road? Perhaps time will tell.
Tuesday’s rejection at the 28.78 resistance (23 May high) set the tone for the premarket drop to 27.16. This makes the 20.22 price target (11 May low and 100% Fibonacci extension level) a viable target for the bears. A breakdown of this support opens the door to 10.49, which is the 127.2% Fibonacci extension level. A further decline makes the 5.41 price mark and site of the 141.4% Fibonacci extension level a potential target further south.
On the other hand, any recovery in the stock must be preceded by a break of the 28.78 resistance. This move opens the door for a potential run toward the 35.10 price resistance (14 March 2022 low). Additional targets to the north are seen at the 40.16 psychological price level (18 April high) and 44.96 barrier, where the high of 9 March 2022 is found.
This post was last modified on %s = human-readable time difference 14:23