What's Going On With Rivian Stock?

Rivian Automotive Inc RIVN shares are trading lower by 1.3% to $19.24 Friday afternoon. The stock has dropped some 18% to start 2024 trading after the company on Tuesday reported fourth-quarter deliveries of 13,972, slightly below the forecasted 14,114.

This 1% miss led to a market reaction this week, but some, including fund manager Gary Black, suggested that the response may have been misguided. Black noted that the fourth-quarter deliveries were down 10% from the previous quarter.

What Else?

Several sectors are also experiencing a decline to start 2024, likely due to rising Treasury yields. Growth stocks such as Rivian rely on anticipated future cash flows to determine their value. But when interest rates rise, the discount rate used to evaluate these cash flows also increases.

This uptick in the discount rate can lower the current value of expected cash flows, impacting how investors view the worth of growth-focused stocks.

See Also: Rivian Stock Sell-Off Overdone? Why This Fund Manager Shrugs Off Q4 Deliveries Miss

According to data from Benzinga Pro, RIVN has a 52-week high of $28.06 and a 52-week low of $11.68.