Shares of Rivian Automotive Inc. (RIVN) experienced a decline in premarket trading on Monday, marking their third consecutive loss. This drop comes shortly after Tesla Inc.'s (TSLA) unveiling of its first Cybertruck over the weekend. Rivian's stock had already seen a decrease of 4.2% over the past two sessions after reaching a seven-month high on July 12.
Analyst Ben Kallo from Baird expressed concern about the competitive pricing and specifications of the Cybertruck, seeing it as a potential risk for Rivian. In a note to clients, Kallo mentioned that he approached Rivian's stock with caution ahead of the release of their second-quarter results on August 8. His concerns revolve around the costs associated with the development of Rivian's electric vehicle manufacturing facility in Georgia.
It is worth noting that Rivian's stock has soared by an impressive 80.8% over the last three months, while Tesla's stock has also experienced significant growth at 50.4%. During premarket trading, Tesla's stock rose by 1.7%, and the S&P 500 recorded a gain of 7.1%.
Overall, the buzz surrounding Tesla's new Cybertruck has negatively impacted Rivian's stock performance. With the impending release of second-quarter results and concerns about development costs, investors are adopting a cautious approach towards Rivian's stock.