What happened

Many stocks in the technology sector have been sliding over the past several weeks and months. Rivian Automotive (RIVN -12.05%) was one that reversed its downtrend after it reported first-quarter results on May 11. Rivian shares are up more than 35% since they bottomed going into that release. But that positive trend is reversing today. As of 11:05 a.m. ET, Rivian shares were down 6.9%. 

So what

Investors regained some confidence from the company when it said in that quarterly report that it reaffirmed previously reduced production guidance for 2022. Momentum off the stock's all-time low continued when the CEO added another 1 million shares to his holdings, and the company made progress to solidify plans and incentives with the state of Georgia for a second production facility. But a report from Reuters yesterday highlighting delivery struggles and how current market dynamics could hurt capital-raising initiatives has the stock tanking today. 

Worker at Rivian production facility with R1T electric pickup truck.

Image source: Rivian Automotive.

Now what

The Reuters report quoted customers becoming increasingly frustrated with delivery issues with their Rivian orders. One prospective customer said his years-old reservation keeps getting pushed behind newer ones. "It's just annoying and it feels like there's no order to how they're doing things," the customer said. 

Supply chain issues have put Rivian in a bit of a bind with some customers. The company is aiming to boost production by working with suppliers to improve volume with more steady combinations of options. That results in some newer orders with specific interior and exterior color and wheel options effectively jumping the line. While that could be a good approach for Rivian to maintain its desired level of productivity, it is frustrating customers. 

At the same time, dropping overall market valuations in the electric vehicle sector has reduced options for raising new capital. Investors were reminded of that today when competitor Fisker said it was raising $350 million in new capital with an at-the-market equity offering. That comes after the stock has dropped nearly 50% in the past six months. That has all added up to Rivian giving back a chunk of its recent gains today.