What happened

Beginning the new month on an inauspicious note, shares of Rivian (RIVN 2.34%) are stuck in reverse today. After rising yesterday, the electric pickup manufacturer's stock is facing pressure from an analyst's downgrade and news that Ford (F 0.38%) is seeing higher demand for its electric pickup.

As of 12:10 p.m. ET on Tuesday, shares of Rivian are down 3.3%, paring back their earlier loss of 4.7%.

So what

Feeling less bullish about Rivian's prospects, Andres Sheppard, an analyst at Cantor Fitzgerald, downgraded the stock to neutral from overweight. In addition to the stock's valuation, Sheppard based the stock's lower rating in part on growing competition from Tesla (TSLA -8.78%) and its Cybertruck, which, according to Sheppard, has over 1.2 million reservations.

In response to an analyst's question about the Cybertruck on Tesla's second-quarter conference call, Elon Musk said: "Demand is so -- so far off the hook, you can't even see the hook. So, that's really not an issue."

Another factor powering the sell-off today is Ford's announcement that it has resumed production of the F-150 Lightning. The company had suspended production to upgrade the factory that manufactures the electric pickup. The company now estimates that annual production capacity for the Lightning will soon reach 150,000 units.

Rivian investors are also concerned about the growing market appetite for Ford's electric pickup truck. According to Ford, the recent price cuts to the F-150 Lightning have resulted in a "threefold increase in web traffic and sixfold increase in orders."

Now what

Tesla and Ford certainly represent formidable competition to Rivian, and Ford's news that its price cuts to the F-150 Lightning have sparked customer interest is understandably concerning to Rivian shareholders.

But concluding that Rivian is no longer an attractive EV stock to hitch a ride with based on today's news seems premature. There's enough room on the road for more than one electric pickup truck, and Rivian certainly remains desirable in potential drivers' eyes.