Rivian (RIVN) to $0! The Countdown has Started - How Long Before this Stock Crashes?
Chris Johnson discusses how Rivan, an EV manufacturer, has slipped below a significant indicator that suggests a 50 to 80% decline in the next 6 to 12 months, making it an opportunity for short trading. The stock is already down 60% year-to-date due to challenges in the EV industry, including higher interest rates and waning demand. Analysts predict a further decline in the stock price.
[00:00]( • Rivian (RIVN) to $0! The Countdown ha... ) Rivan's stock has slipped below a key indicator of $10, suggesting a potential decline of 50-80% in the next 6-12 months.
Crossing below $10 is seen as a bearish signal for many companies.
Charge Point, another EV charging company, experienced a similar decline after crossing this level.
The stock is already down 60% year to date.
[02:31]( • Rivian (RIVN) to $0! The Countdown ha... ) The EV industry is facing challenges, including higher interest rates, waning demand, and political pressure, leading to a decrease in EV sales.
Tesla's stock is down 30% year-to-date.
Governments are reconsidering restrictions on EVs.
GM and Ford have paused full EV production and shifted to hybrids.
More EVs are seen on the street, but they are not moving off the showroom.
[05:00]( • Rivian (RIVN) to $0! The Countdown ha... ) Despite analysts' predictions of a turnaround, RIVN stock has not yet reached its lowest point, and the company's decision to introduce new, more expensive EV models may not be enough to compete with Tesla's Model Y.
RIVN stock is down 60% year-to-date.
Analysts anticipate a "kitchen sink moment" where RIVN will disclose all its issues, but this has not happened yet.
RIVN announced the release of three new models, but the timing may not be ideal as Tesla's Model Y sales are already declining.
Chris personally finds RIVN EVs visually appealing but acknowledges that aesthetics alone are not enough for success.
[07:33]( • Rivian (RIVN) to $0! The Countdown ha... ) The stock price of a company has dropped below $10, and the increase in selling volume suggests that investors are reacting negatively.
The stock initially rose from $10 to $12 after an announcement on March 12th.
The stock has retraced back to $10 and has now broken below that threshold.
The increase in volume is due to selling, not buying, indicating a negative sentiment in the market.
Analysts' behavior and expectations will play a significant role in the stock's performance over the next few months.
[10:07]( • Rivian (RIVN) to $0! The Countdown ha... ) The video discusses the expectations and sell recommendations for RIVN, with analysts lowering their target prices, potentially causing the stock to go lower.
Analysts are expected to lower their target prices for RIVN.
The burn rate of the company may result in selling pressure from RIVN bulls.
The stock may experience increased volatility due to a break in the consolidation period.
The video warns RIVN bulls that the stock may head to $8, bounce back to $10, and then drop to $6, resulting in a $5 price tag over the next 6 months.
[12:39]( • Rivian (RIVN) to $0! The Countdown ha... ) Chris predicts that the stock price of RIVN will hit $8 in the next week, with a potential pullback to around $9 before a longer-term downward trend to $5 and possibly $2.
Chris suggests considering put options on RIVN for bearish trading strategies.
It is recommended to pay for put options with longer expiration dates to take advantage of long-term trends.
Shorting the stock using margin accounts is not recommended due to the risk of margin calls.
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