Reasons why Rivian stock is down again today

Rivian Automotive (NASDAQ Resonance Symbol: RIVN)The company's stock price has been in a free-fall lately. That continues today, as the electric vehicle (EV) maker continues to release news that looks like a negative. Even though Rivian itself doesn't have any real negative news, its shares have tumbled 50% in the last three months.

Today's decline appears to be the same. The big EV news, which hints at a continued decline in demand, seems to be hitting Rivian especially hard. As of 11:45 a.m. ET Monday, Rivian shares were down 5.11 TP3T at the start of the trading week.

Electric Vehicle Makers Cut Spending

One factor that has hit Rivian's stock price recently is theFord motorsdecided to reduce the pricing of its F-150 Lightning model by up to $5,500. The model is one of the only direct competitors to the Rivian R1T full-size electric pickup.

Today, the electric vehicle leaderTesla) told employees that it will lay off at least 10% worldwide, continuing its downward trend. Tesla disappointed investors by delivering about 9% fewer cars in the first quarter compared to the first quarter of last year. But Rivian's first-quarter deliveries were in line with expectations, and the company said it expects to build 57,000 electric vehicles this year.

This is roughly the same as last year's production, as the company has had to delay a promotion a bit to prepare for the next-generation R2 model. Sales of the less expensive R2 SUV are expected to begin in 2026.

That's a long way off, and the market demand for electric vehicles is currently in doubt. Ford's price cuts are aimed at reducing unsold inventory. Tesla's downsizing doesn't mean demand is accelerating. But so far, Rivian has built its own unique brand and has a path to expanding its market through lower-priced vehicles. If investors see Rivian succeeding in this goal, then buying Rivian stock at its current historic lows could pay off.

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Howard Smith owns shares of Rivian Automotive and Tesla.The Motley Fool holds a recommendation for Tesla.The Motley Fool has a disclosure policy.

Why did Rivian stock fall again today?