$RIVN - Ready to Make New Lows
Earnings were not kind to LCID.
Lucid Group cut its car production forecast for this year by as much as 40%.
The company cited supply chain constraints and parts quality issues for slashing production to between 12,000 and 14,000 vehicles, down from initial expectations of 20,000.
“This reflects the extraordinary supply chain and logistics challenges we’ve encountered and our unrelenting focus on delivering the highest-quality products,” Lucid CEO Peter Rawlinson said in a statement. “We remain confident in our ability to capture the tremendous opportunities ahead given our technology leadership and strong demand for our cars.”
It hasn't been much different for car companies across the world, EV or not.
This brings us to RIVN. A stock that has been cratering from its highs earlier this year. They report earnings on March 10th. The same day CPI is released. Talk about a double whammy.
Supply chain constraints remain and I expect RIVN to guide in a very similar manner to LCID. They are both in the early innings of their life cycle as companies and not as well equipped to handle inflationary and supply risks like the seasoned TSLA. Until this point I had not even mentioned the tremendous chip shortage.
Expect RIVN to only make new lows from here on out with this inverted cup and handle setup as noted above.
Lucid Group cut its car production forecast for this year by as much as 40%.
The company cited supply chain constraints and parts quality issues for slashing production to between 12,000 and 14,000 vehicles, down from initial expectations of 20,000.
“This reflects the extraordinary supply chain and logistics challenges we’ve encountered and our unrelenting focus on delivering the highest-quality products,” Lucid CEO Peter Rawlinson said in a statement. “We remain confident in our ability to capture the tremendous opportunities ahead given our technology leadership and strong demand for our cars.”
It hasn't been much different for car companies across the world, EV or not.
This brings us to RIVN. A stock that has been cratering from its highs earlier this year. They report earnings on March 10th. The same day CPI is released. Talk about a double whammy.
Supply chain constraints remain and I expect RIVN to guide in a very similar manner to LCID. They are both in the early innings of their life cycle as companies and not as well equipped to handle inflationary and supply risks like the seasoned TSLA. Until this point I had not even mentioned the tremendous chip shortage.
Expect RIVN to only make new lows from here on out with this inverted cup and handle setup as noted above.
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