Rivian Electric Truck Production Has More Than Doubled. Regardless, the stock plummets.

The results were in line with Wall Street estimates, and the stock was up by roughly 3% in premarket activity on Wednesday. However, on yet another difficult day for markets, shares have given up their gains. On Wednesday, Rivian's stock dropped 4.4 percent. The S&P 500 and Dow Jones Industrial Average were both down approximately 1.3 percent and 0.7 percent.

The move on Wednesday follows a 9.3 percent drop in Rivian shares on Tuesday. All growth stocks had a bad day on Tuesday. After Federal Reserve Governor Lael Brainard made aggressive comments in a speech, the Nasdaq Composite Index fell 2.3 percent.

Rivian's stock has had a rough run, and the loss on Tuesday only contributed to that. Year to date, the stock has lost about 60% of its value and is down more than 75% from its 52-week high of nearly $180 per share, as of Wednesday's trade.

Part of the rationale for the decreases is the Fed's war against inflation. Higher interest rates, which are used to combat inflation, damage growth stocks more than other types of companies. Rivian, on the other hand, has had its own setbacks.

Rivian was predicted to generate around 40,000 automobiles in 2022 by Wall Street at the start of the year. Rivian stated in its fourth-quarter results announcement in March that it expects to sell around 25,000 automobiles.

The Tuesday update contains the most recent Rivian guideline news. To fulfil expectations, production will have to ramp up in the second half of the year, but Rivian said it remained on track to meet its full-year 2022 target.

In a report, RBC analyst Joseph Spak hailed the result a "positive first step," adding that robust output can help the EV maker regain confidence. Rivian shares are rated as a Buy by Spak. His price target for the stock is $100 per share.

In the following quarters, investors will be looking for a pleasant surprise in terms of production rates. This could re-invigorate the stock's upward trend.