With Rivian Automotive Stock Sliding, Have You Assessed The Risk?
Rivian Automotive (RIVN) stock is down 9.9% in 5 trading days. The recent slide reflects renewed concerns around vehicle recalls, insider selling, and EV market struggles, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Rivian Automotive stands today.
- Size: Rivian Automotive is a $24 Bil company with $5.8 Bil in revenue currently trading at $19.59.
- Fundamentals: Last 12 month revenue growth of 28.2% and operating margin of -58.5%.
- Liquidity: Has Debt to Equity ratio of 0.27 and Cash to Assets ratio of 0.47
- Valuation: Rivian Automotive stock is currently trading at P/E multiple of -6.7 and P/EBIT multiple of -7.3
- Has returned (median) -19.1% within a year following sharp dips since 2010. See RIVN Dip Buy Analysis.
These metrics point to a Moderate operational performance, alongside Moderate valuation – making the stock Fairly Priced. For details, see Buy or Sell RIVN Stock
That brings us to the key consideration for investors worried about this fall: how resilient is RIVN stock if markets turn south? This is where our downturn resilience framework comes in. Suppose RIVN stock falls another 20-30% to $14 – can investors comfortably hold on? Turns out, the stock has fared much worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- RIVN stock fell 93.0% from a high of $172.01 on 16 November 2021 to $12.00 on 25 April 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- The stock is yet to recover to its pre-Crisis high
- The highest the stock has reached since then is $27.64 on 31 July 2023 , and currently trades at $19.59
| RIVN | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -93.0% | -25.4% |
| Time to Full Recovery | Not Fully Recovered | 464 days |
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