What happened
Shares of the electric vehicle maker Rivian Automotive (RIVN -2.27%) fell this morning, likely because investors were processing news about growing frustration about wait times for customers who've pre-ordered Rivian vehicles. Rivan's stock may also be sliding today after another electric vehicle maker issued guidance that was lower than expected.
The EV stock was down by 5.7% as of 10:41 a.m. ET.
So what
This morning Reuters reported that there's growing frustration among people who have pre-ordered Rivian vehicles -- some orders date back to 2019 -- and are waiting longer to receive their vehicles than people who ordered after them.
Image source: Rivian Automotive.
The report comes just weeks after Rivian said that it would focus some of its production on vehicles with certain colors and wheel accessories in order to maximize production. But the result of that decision is that some orders made earlier will be delayed.
Rivian told Reuters specifically that focusing on a few building combinations "reduces complexity with our suppliers" and "allows us to build a greater number of vehicles."
Customers, and investors, are already frustrated that vehicle production has been slower than expected, especially since the company also significantly increased the price of its vehicles back in March. The company currently has 90,000 pre-orders.
Another factor that may be contributing to Rivian's share price slide this morning is the fact that the Chinese EV maker XPeng issued revenue guidance for its second quarter that was lower than some analysts were expecting.
China's strict no-COVID policy is hampering vehicle production in the country and weighing down XPeng's guidance for the upcoming quarter. While Rivian isn't affected by the China production slowdowns, any negative news from one EV marker is having a negative effect on the broader EV market right now.
Now what
Rivian investors should brace themselves for more share price swings in the short term. The EV market is trying to find its footing at a time when investors are growing increasingly concerned about inflation and a potential U.S. recession.
With production hiccups, rising vehicle prices, macroeconomic events, and some frustrated customers waiting for their vehicles, it's no surprise that Rivian's stock is tumbling right now.
