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Rivian Shares Plummeting: Buying Opportunity?

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Written by Timothy Sykes Reviewed by Bryce Tuohey Fact-checked by Matt Monaco
Updated 12/30/2025, 5:03 pm ET 12/30/2025, 5:03 pm ET | 6 min 6 min read
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Rivian Automotive Inc.’s stocks have been trading down by -5.37 percent following concerns over production setbacks and cost challenges.

  • RBC Capital’s recent analysis dove into Rivian’s Autonomy and AI Day, praising product innovations but flagging liquidity and profitability uncertainties surrounding their R2/R3 models.

  • Morgan Stanley recently downgraded Rivian to Underweight, projecting sustained challenges in the electric vehicle market and maintaining a cautious outlook through 2026.

  • CEO Robert J. Scaringe’s sale of 17,450 company shares has sparked speculations regarding future growth prospects and company confidence.

Candlestick Chart

Live Update At 17:03:22 EST: On Tuesday, December 30, 2025 Rivian Automotive Inc. stock [NASDAQ: RIVN] is trending down by -5.37%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Rivian’s Financial Overview: A Mixed Bag

When trading, it’s crucial to maintain a disciplined approach. While the allure of making a quick fortune can be tempting, it often leads to hasty decisions and significant losses. As millionaire penny stock trader and teacher Tim Sykes says, “Small gains add up over time; focus on building wealth gradually, not chasing jackpots.” This perspective helps traders cultivate patience and resilience, acknowledging that consistent, smaller profits create a more reliable and sustainable path to financial success.

Rivian is navigating turbulent waters. The recall of nearly 35,000 vehicles over a seatbelt malfunction casts a shadow on its safety reputation. As part of this recall, Rivian is implementing an over-the-air software fix for the impacted models, a proactive measure that demonstrates agility yet underlines unresolved design and engineering challenges. This episode has significantly impacted consumer trust and could influence future purchase decisions. Such concerns are further magnified by RBC Capital’s concerns over liquidity, jeopardizing Rivian’s ambitious expansion plans.

On the financial front, Rivian’s recent earnings report paints a contrasting picture. The company’s Q3 2025 results revealed a considerable net loss of $1.17B, underscoring ongoing operational challenges. Despite posting $1.56B in revenue, Rivian’s expenses spiraled to $2.54B, reflecting a burning cash scenario. The negative free cash flow further highlights Rivian’s struggle in balancing investments and cash outflows, exacerbated by hefty R&D expenditures. Alarmingly, financial ratios hint at vulnerabilities; the EBIT margin and profit margins are deep in the red, echoing the market’s caution in placing long-term bets on Rivian.

Analyzing Rivian’s stock performance offers insights into market reception. Recent stock charts depict a steady decline in share price from mid- to late-December 2025, closely aligned with the recall announcement. Opening at $22.45 on Dec 19, 2025, RIVN closed recently at $19.59, demonstrating a downward trend not solely attributable to external market forces. Rivian’s volatility is compounded by CEO Scaringe’s share sale, stoking fears of internal turbulence and softening investor sentiment. Morgan Stanley’s downgrade, projecting a persistent struggle for Rivian amidst the ‘electric vehicle winter,’ further dampens market enthusiasm.

Record-breaking electric vehicles production could help overshadow these strains. However, Rivian’s product lineup, including R2/R3 models, encounters profitability doubts and faces increasing competition in the EV segment, questioning the sustainability of its current growth trajectory.

Challenges and Opportunities: Rivian’s Market Outlook

Rivian’s journey is not without opportunities. Innovative engineering and breakthrough designs showcased during recent tech showcases solidify Rivian’s reputation for futuristic product offerings. The buzz and novelty of stepping into a Rivian vehicle remain high, enticing those eager for sustainable transportation solutions. Yet, skeptics have targeted liquidity risks, evidenced by the potential drain posed by ongoing recalls and R&D investments in forthcoming models. Moreover, in a fluctuating EV ecosystem, Rivian stands at crossroads, with organizational strategy needing to shift toward securing financial stability while driving new vehicle developments forward.

As Rivian heads into 2026, its market outlook teeters on strategic execution. The company’s ability to manage recalls, optimize production costs, rectify operational inefficiencies, and rapidly commercialize technology solutions could offer much-needed relief. Enhancements on its financial statements, notably reducing loss margins, would serve as a key indicator of progress for market analysts and traders monitoring the company’s trajectory.

Navigating the landscape of electric vehicles transcends beyond short-term fixes, necessitating holistic change in both fiscal and operational strategies. Rivian must reconcile its visionary pursuits with realities of economic pragmatism—a path that remains strenuous yet potentially rewarding, contingent on adequate reforms. 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 encapsulates the cautious approach Rivian must employ to ensure they thrive in the challenging market dynamics they face.

In the coming months, Rivian’s market journey will continue to unravel, albeit promoting informed caution amidst volatility. Traders must decipher the alluring possibilities that lie ahead, cautiously weighing risks reflective of the present. Rivian’s paces suggest continued conjecture and speculation as this EV disruptor strives to establish a stable foothold in an ever-evolving industry landscape.

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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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.
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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”