While it managed to electrify some enthusiasm among the bulls on Monday, Rivian Automotive (RIVN -0.78%) is failing to maintain momentum today. Thanks to news that Ford (F 1.76%) is accelerating production of its Lightning F-150 electric truck and an analyst downgrade on the stock, Rivian investors are finding sufficient cause to unplug from the company's stock.
As of 1:14 p.m. ET, shares of Rivian have fallen 8.5%.
Ford announced today that production has begun for the company's highly sought-after electric truck, Lightning F-150. According to Ford, the company has received 200,000 reservations for the vehicle, which is a competitor to Rivian's electric-truck offerings R1T and R1S.
Addressing the company's achievement in starting production, Jim Farley, Ford's president and CEO, said, "America's real transition to electric vehicles starts now... F-150 Lightning is just the beginning of our ambitions for growth and leadership in digital, electric vehicles."
Representing another warning flag for investors today, Barclays sees less upside to Rivian's stock than previously thought. The firm cut its price target on the stock to $38 from $42 today.
In and of itself, the price-target reduction from Barclays isn't catastrophic. However, when taken in conjunction with analysts' other actions last week, investors are sensing that Wall Street's tide of bearish sentiment for the stock is too much to overlook.
It's not too surprising that electric-vehicle (EV) investors have decided against hitching a ride with Rivian in light of Ford's announcement. As Rivian struggles with production delays, its potential customers will have the opportunity to hop on board with the F-150 Lightning, instead. Investors are recognizing that this increased competition, though not unexpected, could hinder Rivian's growth in the near term.