Why did Rivian Automotive (RIVN) crash into pre-market trading?

Shares of Rivian Automotive, Inc. (NASDAQ: RIVN) trended on Wall Street on Friday, Dec. 17, a day after reporting its third quarter financial results for fiscal 2021. Meanwhile, the company said that it could miss its annual production target.

Rivian is an electric vehicle manufacturing company based in Irvine, California. It debuted in the US market last month while raising $12 billion in its IPO, making it the biggest listing of the year.

The company expects to fall “by a few hundred vehicles” short of its goal of manufacturing 1,200 vehicles by the end of fiscal year 2021, the company said in its statement Thursday. The electric vehicle maker’s CEO, RJ Scaringe, said ramping up production of the marquee pickup has been “more difficult than expected”. However, there are no long-term or operational barriers related to the supply chain, he added.

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Shares of RIVN fell more than 9% in premarket trading on Friday, following a drop of more than 5% the day before. Meanwhile, the Amazon-backed electric vehicle maker said Thursday it will build a second plant in Georgia, where it will assemble about 400,000 electric vehicles each year.

Notably, the company plans to start building its manufacturing plant in the summer of next year and plans to start manufacturing the vehicles in 2024. The cost of the electric vehicle plant will be around 5 billion. U.S. dollars.

The EV startup has already started manufacturing its first electric pickup trucks at a former Mitsubishi factory in Normal, Illinois. On December 16, the firm said it had already shipped two of its first SUVs.

He also intends to fulfill his commitment to manufacture 100,000 delivery vans for Amazon, so he was looking for a place to build a manufacturing plant to increase his production rate.

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Stock Performance and Highlights of Rivian Automotive, Inc. (NASDAQ: RIVN)

RIVN stock was priced at US$98.20 at 6:04 a.m. ET, down 9.80% in premarket trading on Friday, after closing at US$108.87 on Thursday. The company has a market capitalization of US$97.02 billion. Its stock saw the highest price of US$179.47 and the lowest price of US$95.20 in the past 52 weeks.

RIVN’s trading volume was 13,627,640 on December 16. Its stock value has fallen 11.48% since it began trading on the Nasdaq on November 10.

The company posted an operating loss of $776 million in the third quarter of FY21, compared to a loss of $288 million in the same quarter a year earlier. For the period, it posted a net loss of $1.23 billion, compared to a loss of $288 million in the comparable quarter a year earlier.

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At the end of the line :

The electric vehicle sector has captured the attention of investors in recent months as global leaders have focused on the industry. The electric vehicle sector is considered a key element in the fight against climate change. However, the sector has also faced supply hurdles caused by the Covid-19 pandemic, but is expected to rebound as the economy recovers.

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