Rivian Automotive (RIVN 6.10%) stock had a strong 2023. Shares were higher for the year by nearly 30%. Much of that came from a push in the final month of the year, as Rivian shares soared 40% in December alone.
On the first day of 2024 trading, though, shares are plunging. The stock was lower by 9.2% as of 11:50 a.m. ET. That came after the company reported reported its fourth-quarter and full-year electric-vehicle (EV) production and delivery results.
Buy the rumor, sell the news
The EV start-up gave investors some reason to be optimistic in November when it reported its third-quarter update. Rivian increased its vehicle output projection for 2023 for the second time at that time -- to 54,000 units.
But it surpassed that guidance with final 2023 production of more than 57,000 EVs. Yet after the stock's recent huge run, some investors are now selling the news. For investors, though, the question is whether that provides an opportunity to own some of this growing business.
EV maker bucking the trend
The EV-maker's trend in raising production forecasts over the last year is bucking what has become a trend of lowered estimates in the industry. It may well be Rivian's competitive advantage that has it growing faster than other EV manufacturers.
The company has a three-vehicle lineup consisting of the R1T pickup truck, R1S SUV, and an electric commercial delivery van. That has differentiated it from many other automakers, including EV leader Tesla.
The next catalyst may not come until the company announces its volume plans for 2024. That will be on Feb. 21, when Rivian will report its full fourth-quarter financial and operational update. Today's drop provides a chance to enter the stock at a lower price than last week for those who see more good news coming from Rivian.
