Rivian (NASDAQ: RIVN) closed at $19.30 +$0.85 (4.61%) on Tuesday, February 28, however, as news circulated of their mixed fourth-quarter earnings in addition to an underwhelming electric vehicle (EV) production outlook, the stock fell drastically after hours.
The EV startup announced an adjusted loss before interest, taxes, depreciation, and amortization of about $5.2 billion in 2022, which was lower than the loss projection provided in November, which was for $5.4 billion. Rivian projects that its car manufacturing will reach 50,000 units in the year 2023. It would be almost twice the amount recorded the year before but far lower than the around 60,000 anticipated by a number of Wall Street experts.
The company stated in its letter to shareholders:
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“Supply chain continues to be the main limiting factor of our production; during the quarter we encountered multiple days of lost production due to supplier shortages. We expect supply chain challenges to persist into 2023 but with better predictability relative to what was experienced in 2022,”
At the time of publication, the stock is changing hands at $17.77 in premarket trading, down 7.93%, wiping away its gains from a day earlier.
RIVN chart analysis
In the last month, RIVN has been trading in the $16.91 – $22.09 range. Since it is currently trading in the middle of this range, some resistance may be found above.
In particular, the first resistance zone ranges from $19.34 to $19.51 based on a combination of multiple trend lines and important moving averages in the daily time frame. Above that, there is resistance at $20.22 from a horizontal line in the weekly time frame.
Conversely, investors should keep a close eye on $17.32 as a key support level to hold, a Stop-Loss order could be placed below this support zone.
Rivian technical overview
RIVN’s technical indicators on TradingView‘s one-day gauges are mixed, with the summary aligning with a ‘neutral’ sentiment at ten while moving averages are for the ‘sell’ at 8. Meanwhile, oscillators are pointing at ‘neutral’ with 9.
Yet, Wall Street analysts have given the EV startup a consensus ‘buy’ rating from 21 analysts based on its performance over the past three months. In total, 11 experts advocate for a ‘strong buy’ and 2 for a ‘buy.’A further 6 analysts opt to hold, and 2 opt to ‘sell.’
The average price forecast for the next year is $33.06; the target indicates a 71.29% upside from its current price, while the highest price target over the next year is $55 +62.54% from its current price.
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