What's Going On With Rivian Stock?

Rivian Automotive Inc RIVN shares are trading lower by 2.8% to $22.73 Wednesday morning amid overall market weakness. Downward pressure on the market this week is being exacerbated by elevated oil prices, reaching their highest point since November 2022 due to Saudi Arabia and Russia extending their voluntary supply reductions. Rising Treasury yields are also responsible for the downward pressure on risk assets.

As Treasury yields rise, safer government bonds become more attractive to investors because they offer higher returns with lower risk. This makes high-growth stocks, like Rivian, relatively less appealing in comparison because they are considered riskier and may not provide as attractive returns in the short term.

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Many growth stocks, including Rivian, are valued based on their future cash flows. When Treasury yields rise, the discount rate used in valuation models increases, leading to lower present values for future cash flows.

According to data from Benzinga Pro, RIVN has a 52-week high of $40.86 and a 52-week low of $11.68.