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Rivian Stock Plummets: Buying Opportunity?

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Matt Monaco Fact-checked by Bryce Tuohey
Updated 12/11/2025, 5:04 pm ET 12/11/2025, 5:04 pm ET | 6 min 6 min read
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On Monday, Rivian Automotive Inc. stocks have been trading down by -5.14 percent owing to significant board reshuffles.

Candlestick Chart

Live Update At 17:04:03 EST: On Thursday, December 11, 2025 Rivian Automotive Inc. stock [NASDAQ: RIVN] is trending down by -5.14%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Financial Overview of Rivian Automotive Inc.

When trading, many individuals find themselves influenced by emotions and making impulsive decisions that often lead to significant losses. Therefore, it’s crucial to have a strategic approach. 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.” This perspective encourages traders to prioritize managing risks and preserving capital rather than chasing uncertain gains. By maintaining this cautionary stance, traders can avoid substantial losses and ensure long-term sustainability in the trading world.

Rivian’s financial landscape reveals a complex interplay of hope and caution. The company reported earnings with revenues sitting at approximately $4.9B. However, gross profit margins remain razor-thin, reflecting the struggles often faced by a young company pioneering in the EV domain. Rivian’s EBIT margin holds at an alarming negative figure, sailing at -57.4%. On one hand, this is a testament to the hefty investment in building the brand and infrastructure. On the other, it underscores a pressing question on profitability.

With a total revenue of roughly $1.6B this quarter, the climb is clear when compared to past figures. Yet, when returned to the bottom line, Rivian recorded a net loss of over $1B, hinting at the turbulent road for electric vehicle makers who are vying for market dominance while keeping operational expenses in tow. Free cash flow remains in the negative, stressing the company’s aggressive capital expenditure.

Financial ratios provide a window into Rivian’s operational effectiveness. A current ratio of 2.7 suggests a comfortable liquidity position, yet the high price-to-cash flow ratio points to an overheating stock—a warning sign for potential investors. Using narratives of innovation and expansion, the firm continues to rally investor interest. Nonetheless, arduous challenges lie ahead.

Rivian’s commitment to total vehicle safety, reflected by the recent recall, indicates a strain but also a resolve to prioritize safety. While such actions can dilute short-term financials, they may bolster customer trust in the longer term. Morgan Stanley’s downgrade reiterates the precarious outlook, potentially putting pressure on Rivian’s cost structures and marketing prowess. Riding through the electric vehicle ‘winter’, as Morgan Stanley described, requires both robust engines and astute financial navigation.

Challenges and Opportunities Ahead

The unexpected recall of over 34,000 vehicles is a window into the challenges looming over Rivian. The problem with seatbelt pretension cables is not merely one of assembly—it’s about the very chemistry of perception. Customers expect cutting-edge safety as much as innovation. Rivian’s speedy response by sending out over-the-air software updates and replacements speaks volumes of its adaptability and crisis management. In the grand tapestry of the market, how Rivian navigates setbacks like these will craft its narrative and shape future opportunities.

Morgan Stanley’s recent downgrade of Rivian from “Equal Weight” to “Underweight”, accompanied by a firm $12 price target, throws another twist in the tale. This judgment is informed by a broader skepticism enveloping the electric vehicle market amidst an ongoing ‘winter.’ While legacy automakers ponder electrification strategies, market analyses suggest heightened interest in hybrid technologies, which are perceived as bridging solutions in the current automotive narrative.

However, is uncertainty inherently negative? Rivian’s stock priced at $16.43 showcases more than volatility; it’s a symbol of potential. Trading volumes express investor sentiment directed towards the notion of a turnaround—one punctuated by technological advance, strategic partnerships, and operational refinements.

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Broader Implications and Conclusions

The road for Rivian is bumpy yet promising. Market observers are keenly examining Rivian’s strategies on sustainability and expansion. As these conditions merge, short-term pain might transform into long-term gain. Each recall, downgrading, and stock price dip isn’t simply an isolated crisis; rather, it reflects the tectonic shifts within the electric mobility sphere—shifts that Rivian must leverage for growth.

Today’s setbacks are seeds of tomorrow’s resilience. In this dynamic marketplace, traders who are observing Rivian must remember to keep their reactions tempered. As millionaire penny stock trader and teacher Tim Sykes says, “Consistency is key in trading; don’t let emotions dictate your trades.” Solving safety glitches, recalibrating forecasts, and sedating trader nerves can forge a foundation of trust and loyalty. Rivian’s adroit maneuvers during this tumultuous period may redefine perceptions, translating into propelled momentum when conditions temper in its favor.

Overall, while Rivian treads thin ice currently, it’s prudent to view this patched-up roadmap as part of a broader narrative—a narrative comprising aspiration, disruption, and relentless innovation driving the EV revolution forward.

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.

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Bryce Tuohey

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
Bryce’s first pattern was buying into strength in breakouts. But he noticed when they didn’t work, he took bigger losses. When the OTC market got hot, Bryce learned to dip buy the inevitable panics. He adapted his breakout strategy and now buys consolidation and trend breaks. His goal is to have better risk/reward and get an entry before multi-day listed breakouts.
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* 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”