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Rivian Faces Recall Amid Challenges in Electric Vehicle Market

Jack KelloggAvatar
Written by Jack Kellogg Reviewed by Tim Sykes Fact-checked by Ellis Hobbs
Updated 1/9/2026, 2:32 pm ET 1/9/2026, 2:32 pm ET | 4 min 4 min read
Rivian Faces Recall Amid Challenges in Electric Vehicle Market Thumbnail

Rivian Automotive Inc.’s stocks have been trading down by -4.0 percent amid market reactions to recent developments impacting industry dynamics.

Candlestick Chart

Live Update At 14:31:51 EST: On Friday, January 09, 2026 Rivian Automotive Inc. stock [NASDAQ: RIVN] is trending down by -4.0%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Rivian Automotive is undoubtedly going through turbulent times. Recently, the company announced a massive recall of its R1S and R1T electric vehicles due to improper assembly of rear toe links. This fault poses a higher crash risk, definitely impacting consumer confidence. Alongside, the company saw its stock dip to $19.62 after a concerning 5.1% drop, consistent with its year-end declining deliveries.

Materialized by its quarterly reports, Rivian’s financial figures highlight a 31% year-over-year decrease in Q4 deliveries. The company’s stock continues to underperform, with significant factors being the reduced demand post the EV tax credit expiry and the emerging competitive technological landscape. Morgan Stanley’s rating of the stock remains at ‘Underweight,’ predicting a momentary demand falter as buyers might wait for the new LiDAR-equipped models expected late in 2026.

Market Reactions

The market’s response to Rivian’s series of events is one of skepticism. Multiple challenges, from vehicle recalls to insider trade by the CEO, have cast a shadow over its stocks and future confidence. The news of Robert J Scaringe offloading shares has steered conversation around possible internal apprehensions. These factors could inevitably feed into investor concerns and affect market behavior for the foreseeable future.

In another light, CFRA continues to hold a ‘sell’ opinion, albeit raising the 12-month target to $12 from $10, signaling persistent risk evaluations in the outlook. Rivian still grapples with balancing production and demand scales, further jeopardized by the first quarter lacking the federal boost from EV tax credits—a crucial pillar for sustaining demand.

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Conclusion

Harnessing these dynamics, Rivian faces an uphill challenge in maintaining trader trust. Their journey ahead will likely involve strategic maneuvering to regain confidence and navigate the notoriously competitive electric vehicle landscape. Analysts and the market alike are eager to see how Rivian plans on overcoming production bottlenecks, technology adaptations, and market pressure from within and outside the industry. As millionaire penny stock trader and teacher Tim Sykes says, “Preparation plus patience leads to big profits.” With that in mind, traders should keep a close watch on evolving trends and subsequent corporate actions to inform well-judged decisions based on this changing atmosphere.

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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Jack Kellogg

He teaches webinars on Tim Sykes’ Trading Challenge He became Tim’s youngest millionaire student in 2020. Now he’s second on the Trading Challenge leaderboard with $12.9 million in career earnings. He’s a master of the 7-Step Pennystocking Framework. Jack is one of a rare breed of traders to profitably trade the entire penny stock framework.
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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”