Why Rivian And Lucid Shares Are Tapping The Brakes Today
Shares of several companies in the broader consumer discretionary sector including Rivian Automotive Inc
(Get Free Alerts for LCID) are trading lower Monday amid overall market weakness as a rise in bond-yields weighs on stocks.
Investors are also preparing to assess the financial impact stemming from the Russia-Ukraine conflict and a rise in U.S. inflation as a large number of companies are set to report earnings this week.
According to a CNBC report, Rivian continues to battle supply-chain headwinds. Although Rivian is “really confident” it can produce 25,000 vehicles in 2022, the company initially guided for 50,000 vehicles this year. Rivian is reportedly fighting supply-chain constraints for semiconductors and wire harnesses.
“The vast majority of our vehicle is not having supply chain constraints. It’s just a small percentage,” Rivian CEO RJ Scaringe told CNBC. “It doesn’t take more than one part to stop the production.”
RIVN, LCID Price Action: According to data from Benzinga Pro, Rivian was down 5.22% at $38.47 at press time and Lucid was down 2.75% at $20.43.