Rivian ($RIVN) Rebounds From Record Low In Premarket Move

Shares of Rivian Automotive, Inc. ( RIVN ) rose in premarket trading on Monday after the battering they received last week in the aftermath of the electric vehicle startup's quarterly report.

The stock plummeted by about 38% in the week ended Feb. 23 and closed at a record low after the company announced 2024 deliveries guidance that fell notably below Street expectations. Following the earnings, sell-side analysts lowered their forward estimates for the company and, as an extension, their price targets for the stock.

Rivian Inc. ( RIVN ) also suffered downgrades in the hands of JPMorgan, UBS and Truist Securities. JP Morgan downgraded the stock from Neutral to Underweight and reduced its price target from $20 to $11.
UBS downgraded the stock from Buy to Sell and lowered the price target from $24 to $28.
Truist cut its rating on the stock from Buy to Hold and took down the price target from $26 to $11.

Monday's rebound could be because the sell-off may have been overdone. Following last week's dismal stock performance, Tesla investor Gary Black defended the company. He flagged the company's likelihood of emerging as a credible number two to Tesla by 2030.

The company has a key catalyst in the near term as the Irvine, California-based company gears up to launch its second-gen R2 low-priced EV on Mar. 7.

For a reversal, the stock should fill the gap formed when it gapped down following the quarterly results and go past a key resistance around the $16 area. The stock is currently in oversold territory, going by its relative strength index.

In premarket trading, Rivian ( RIVN ) rose 1.09% to $10.18 and suddenly plummeted by about 2%.