What happened
Investors were regaining some of their bullish sentiment for Rivian Automotive (RIVN -2.27%), an electric automaker, today after the company's share price plummeted yesterday.
The electric vehicle (EV) stock was up by as much as 7% today and had gained 2.3% as of 2:28 p.m. ET.
So what
Rivan's stock tumbled 9% yesterday after rival Ford Motor Company said it had started production of its all-electric F-150 Lightning. Ford already has 200,000 reservations for the truck, which will compete directly with Rivian's R1T pickup.
Image source: Rivian Automotive.
Ford's F-150 Lightning starts at just $40,000, making it much cheaper than Rivan's R1T starting price of $67,500. Rivian had to raise the price of the vehicle last month due to supply chain issues.
Making matters worse for Rivian yesterday was the fact that Barclays analyst Brian Johnson lowered his price target for the company's stock from $42 to $38.
But some Rivian investors appear to be shrugging off concerns about the company's competition today and are snatching up shares of the EV company. With yesterday's drop, Rivan's share price has fallen 47% over the past three months and some investors may be viewing the drop as a buying opportunity.
Now what
Rivian investors are likely used to some volatility by now and there's likely more ahead as the company tries to ramp up production of its vehicles and faces increasing EV competition.
That doesn't mean Rivian couldn't end up being a good long-term investment, but it does mean shareholders will likely have to stomach more share price swings as the company grows.
