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Rivian’s Bumpy Ride: Recall and Market Moves

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 12/23/2025, 2:32 pm ET 12/23/2025, 2:32 pm ET | 6 min 6 min read
Rivian’s Bumpy Ride: Recall and Market Moves Thumbnail

Rivian Automotive Inc.’s stocks have been trading down by -3.06% following intense scrutiny over production delays impacting investor confidence.

  • Morgan Stanley has downgraded Rivian to Underweight, setting a $12 price target with caution over an ongoing electric vehicle lull.

  • Rivian’s CEO Robert J Scaringe’s sale of 17,450 shares worth $306K indicates potential uncertainty about immediate growth prospects.

Candlestick Chart

Live Update At 14:31:56 EST: On Tuesday, December 23, 2025 Rivian Automotive Inc. stock [NASDAQ: RIVN] is trending down by -3.06%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Earnings Overview and Performance Metrics

When it comes to stock trading, it’s easy to be swept up in the excitement and pressure of making quick profits. However, as millionaire penny stock trader and teacher Tim Sykes, says, “There is always another play around the corner; don’t chase just because you feel FOMO.” This reminds traders to stay patient and disciplined, avoid impulsive decisions driven by the fear of missing out, and carefully evaluate opportunities to make informed trades that align with their strategies.

Rivian’s recent financial statements reflect a complex web of gains and strains. The company, despite some hiccups in quarterly revenues, remains a behemoth to watch in the electric vehicle (EV) sector.

Ending the third quarter of 2025 with a revenue of $1.56B, Rivian saw total expenses of $2.54B. Quite a gap, reflecting the ongoing challenges in balancing operational costs. This mismatch led to a net income totaling negative $1.17B, making profitability a lofty goal as of now.

When diving deeper into Rivian’s key financial metrics, it’s clear that the profitability side presents hurdles. With an EBITDA margin at -41.0% and a profit margin standing at -61.1%, the path to fiscal positives remains intricate. The stock’s price-to-sales ratio at 4.72 seems ambitious, considering the current operational reality. Furthermore, the asset turnover ratio of 0.4 indicates the company is struggling to efficiently use its assets to generate sales. Stockholders may find some solace in its sturdy current ratio of 2.7, showcasing its ability to cover short-term obligations with available liquid assets.

In terms of market presence, Rivian holds considerable sway, an intangible strength amidst numbers that suggest refining. While Rivian has an enterprise value of $24.54B, the shadow of long-term debts looms at $4.97B, highlighting the formidable debt challenge facing the firm.

Looking at the stock charts sprawled over multiple days, Rivian’s trading prices have been fluctuating consistently. From a high of $22.69 to a recent close at $21.085, investors are advised to stay alert. Analyzing intraday patterns unveils brief instances where the stock threatened new highs, only to retreat amidst broader market volatility.

The Road Ahead: Challenges and Market Impact

The recall of tens of thousands of vehicles due to faulty seatbelt pretension cables is more than a mechanical misstep. It’s a red flag, essentially signaling warning signs to both customers and investors about production and quality assurance processes. This incident culminates with Rivian’s efforts to initiate a software update addressing the concern—a band-aid solution over a deep cut needing a stitch.

Morgan Stanley’s lowered rating casts a long shadow over Rivian’s shiny EV ambitions. With a projected price cap of $12, the confidence in Rivian’s short-term recovery falters. They view the EV market’s so-called “winter” as a period of decreased enthusiasm, especially with internal combustion engines and hybrid vehicles holding a more favored stance.

Moreover, the CEO’s sizable share sale reveals internal hesitancies which weren’t spoken in financial briefings. A sale of such magnitude, $306K in shares, could be interpreted as a prudent financial decision during market hesitancy or, more bluntly, a lack of faith in immediate stock rallies.

Adding the recipes of these ingredients, it’s clear that Rivian must not only tend to its technical vines cautiously but also reassure the market of its growth convictions with measurable strides toward profitability and operational efficacy.

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Conclusion: Rivian’s Balancing Act

Rivian is now treading a fine line. The recall—questions on product reliability, the downgrade—eroding investor confidence, and managerial moves casting enough shadows on market speculations. Yet, Rivian isn’t a paper tiger; it still has a foothold like few others in the evolving EV domain. Financial hurdles and market tempests do not dictate its endgame, though they do signal a pressing need for precise navigation.

With financial contours looking a shade intense, Rivian’s rally to regain footing in the market concatenates with a narrative where strategic decisions, market alcoves, and groundbreaking innovation need to intertwinedly tug the company forward. As Rivian maneuvers through this rough terrain, traders should be ready for both sharp turns and clear horizons. As millionaire penny stock trader and teacher Tim Sykes says, “There is always another play around the corner; don’t chase just because you feel FOMO.” Keeping this wisdom in mind, traders can watch diligently for signs that steer clear of caution to reinfuse optimism into Rivian’s engrossing yet tremulous journey.

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:

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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”