What happened
Investors were buying shares of Rivian Automotive (RIVN +1.75%) today despite some negative press. Rivian stock was trading near session highs, up 7.1% as of 2:44 p.m. ET.
So what
The first bit of news came from none other than Elon Musk. The Tesla CEO predicted in a video posted on Twitter that competitors Rivian and Lucid Group were on a path to bankruptcy. Now, Musk isn't exactly a neutral party on the subject of electric vehicles, and the video and news of it reported by Yahoo! Finance likely didn't drive shares either way.
NASDAQ: RIVN
Key Data Points
Perhaps the more significant news item came yesterday when TheStreet reported that Rivian just sent out an update to reservation holders for its R1S models. The report said Rivian is delaying deliveries of the SUV by between one and nine months.
Now what
Rivian is reportedly blaming supply chain disruptions, which shouldn't come as a surprise. The company slashed its projections for 2022 deliveries for that reason earlier this year. It reiterated its expectation for the production of 25,000 vehicles in its first-quarter report just over a month ago as well.
It seems Rivian is trying to maximize the efficiency of its limited supply, and the delivery schedule is being modified as a result. According to the report, the company commented that "we continue to prioritize deliveries in locations where service infrastructure is in place so that we can provide the full ownership experience to Rivian owners from day one."
So there really wasn't new information here other than for the specific reservation holders. And investors today are recognizing that the company is managing the situation as best it can. As for Musk and his prediction, it wasn't based on anything specific. He implied his new competitors need to cut costs or they won't survive, without providing anything more specific. For investors, there's nothing to see there either, and Rivian shares shrugged off both items today.
