timothy sykes logo

Stock News

Rivian Faces Challenges Amidst Downgrades and Recalls

Tim SykesAvatar
Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 12/11/2025, 2:32 pm ET 12/11/2025, 2:32 pm ET | 6 min 6 min read
Rivian Faces Challenges Amidst Downgrades and Recalls Thumbnail

Rivian Automotive Inc. faces market pressure with stocks trading down -7.69% following growing competition in the EV market.

  • Morgan Stanley has downgraded Rivian to “Underweight,” voicing concern about the ongoing “electric vehicle winter” and maintaining a price target of $12. Analysts express a cautious outlook through 2026.

  • Schwab clients were observed engaging in net selling activities, not only for Rivian but also for significant players like Apple and Intel, suggesting possible concerns or profit-taking strategies.

Candlestick Chart

Live Update At 14:32:20 EST: On Thursday, December 11, 2025 Rivian Automotive Inc. stock [NASDAQ: RIVN] is trending down by -7.69%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Financial Overview and Implications for Rivian

Surviving the trading world requires an astute understanding of market dynamics and risk management. As millionaire penny stock trader and teacher Tim Sykes, says, “The goal is not to win every trade but to protect your capital and keep moving forward.” This wisdom highlights the importance of disciplined trading strategies that prioritize longevity over short-term victories. It’s about crafting a strategy that withstands the uncertainties of the market while ensuring sustainable growth. Understanding this can help traders maintain confidence and resilience amid the inevitable ups and downs.

Rivian’s financial journey, evocative of a turbulent sci-fi tale, reveals a massive revenue climb yet shadowed by apprehension. The airy whispers of a significant revenue amounting to $4.97B seem to fade as sobering insights into Rivian’s valuations come to the fore. With a revenue per share of $4.07, Rivian’s performance at first glance looks promising. Yet a deeper dive into the company’s profitability, gross profit margins tell another story: a narrow gross margin of 3.3%. The steep profitability metrics beckon further scrutiny, and they sag under the weight of inefficiencies—an EBIT margin of -57.4% and profit margins falling steeply at -61.34%.

Amidst this financial maelstrom, key ratios bring the harsh realities to light. Total debt to equity stands at 0.98, reflecting a balance dance between managing debts and equity. Meanwhile, the cash situation unfurls tales of strategic handling—$444.1M strong, albeit interwoven with strategic capital expenditure decisions amounting to -$447M. Rivian’s stock remains closely tied to market predictions as opposed to intrinsic value alone. With a price to sales ratio of 3.72 and price to book value set at 4.29, there exists an underlying perception of value not yet fully realized.

However, as fingers run through the pages of the latest earnings reports, dated Sep 30, 2025, the journey feels bittersweet. Operating income dwells at -$983M, a significant excerpt of wider market challenges amidst overwhelming administrative costs. It’s a story where Rivian is yet to find smoother sailing amidst storms, underlying their navigation through rough financial seas with operating costs soaring to $1.01B.

Implications Unveiled: Downgrades and Vehicle Recalls

The recent market events hang like an intricate tapestry, layered with stories interconnected by the stock price threads. The downgrade from Morgan Stanley echoes like a reverberating chime, prompting investors to ponder Rivian’s direction in the electric vehicle (EV) landscape. Amid somber clouds, the downgrade casts a shadow, a reflection of an “EV winter” that nudges towards embracing hybrids and age-old internal combustion engines.

Accompanying this is the narrative of the vehicle recall, plunging potential, and sending ripples of investor apprehension. Similar to a fictional safeguarding system gone awry, the seatbelt pretension cable issue paints a stark image of the meticulous recalls affecting seemingly lifeless machinery. The recall of nearly 35,000 vehicles not only fixes mechanical onus but also seats into investor psyche affecting stock vibrancy. The reflective string unravels market concerns, attributed to safety and logistics, impacting Rivian’s brand optics amidst competitive dynamics.

The broader market response, seen through Schwab’s lenses, is navigating through net sales across tech giants. It adds another layer to understanding Rivian’s market sentiment—an acknowledgment of economic shifts perceived through cautious investor eyes. Notably, an independent recital of Rivian’s narrative calls for sharper, tactical approaches to maintaining its share in the unfolding EV story.

More Breaking News

Conclusion

Rivian’s journey weaves through complex chapters of innovations and trials akin to a feature’s intricate plot, echoing an industry grappling with change. The culmination of financial figures, analyst opinions, safety recalls, and market sentiments continuously shape Rivian’s narrative arc, mirroring broader market dynamics. As millionaire penny stock trader and teacher Tim Sykes says, “It’s better to go home at zero than to go home in the red.” With challenges at their doorstep—whether financial efficiencies, vehicle delivery, or trader sentiment—Rivian charts their course through an evolving EV landscape. This saga continues as observers, like curious actors onlookers, deliberate on Rivian’s unfolding drama.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

Dive deeper into the world of trading with Timothy Sykes, renowned for his expertise in penny stocks. Explore his top picks and discover the strategies that have propelled him to success with these articles:

Once you’ve got some stocks on watch, elevate your trading game with StocksToTrade the ultimate platform for traders. With specialized tools for swing and day trading, StocksToTrade will guide you through the market’s twists and turns.
Dig into StocksToTrade’s watchlists here:

How much has this post helped you?

(0 votes, average: 0 out of 5)
Leave a reply
Author card Timothy Sykes picture

Tim Sykes

Head Writer at TimothySykes.com, Lead Mentor at the Trading Challenge
In his 20-plus years of trading, Tim has made $7.9 million. In his 15-plus years of teaching, Tim’s Trading Challenge has produced over 30 millionaire students. His philosophy emphasizes small gains and cutting losses quickly.
Read More

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”