What Happened?

Shares of electric vehicle manufacturer Rivian (NASDAQ:RIVN) fell 6.9% in the morning session after the company reported weak first-quarter vehicle deliveries of 8,640 units, marking a 36% decline compared to the same period in the previous year. While the delivery figure matched both internal guidance and market expectations, the sharp drop hinted at demand and/or production challenges. The company also reaffirmed its full-year 2025 delivery guidance of 46,000 to 51,000 vehicles. However, the lack of an upward revision likely dampened investor sentiment.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Rivian? Access our full analysis report here, it’s free.

What The Market Is Telling Us

Rivian’s shares are extremely volatile and have had 49 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 6 days ago when the stock gained 8.5% as auto companies with significant manufacturing local presence became more favored after US President Donald Trump announced a 25% tariff on all vehicles imported into the United States. Rivian manufactures its cars in the United States. While this does not necessarily mean the company sources all its components and raw materials domestically, the stock's positive reaction indicated that investors viewed the company as better positioned to adapt to the new tariffs compared to its competitors.

Rivian is down 4.8% since the beginning of the year, and at $12.61 per share, it is trading 30.4% below its 52-week high of $18.11 from July 2024. Investors who bought $1,000 worth of Rivian’s shares at the IPO in November 2021 would now be looking at an investment worth $125.25.

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.