What's Going On With Rivian Stock?
Portfolio Pulse from Henry Khederian
Rivian Automotive Inc (NASDAQ:RIVN) shares fell 7.7% to $15.08 amid broader automotive sector declines after January 2024 inflation rates missed forecasts. The annual CPI inflation rate dropped to 3.1% from 3.4%, above the expected 2.9%. Higher-than-expected inflation could increase operational costs for Rivian, potentially squeezing profit margins and leading to investor sell-off.
February 13, 2024 | 4:27 pm
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Rivian Automotive Inc shares fell due to broader automotive sector declines after January 2024 inflation rates missed forecasts, potentially increasing operational costs and squeezing profit margins.
Rivian's stock price decline is directly linked to the broader automotive sector's reaction to the January 2024 inflation report. Higher-than-expected inflation rates can lead to increased costs for raw materials and labor, directly impacting Rivian's operational expenses and potentially squeezing its profit margins. This situation could lead to investor concern over Rivian's ability to manage costs and maintain profitability, prompting a sell-off.
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