Rivian Automotive Inc‘S RIVN The stock is under heavy pressure and has fallen by 38.32% since the beginning of the year. The bumpy ride of the electric vehicle maker is not only evident on the road but also in the charts, where the technical indicators paint a rather gloomy picture.

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Rivian’s current price is $13.07, below its 8-, 20-, and 50-day moving averages, indicating a strong bearish trend. The recent 24.86 percent drop in just one month suggests that investors are less than confident about Rivian’s short-term prospects.

To add fuel to the fire, Rivian’s production problems are making headlines again. The company recently halted production of its EV delivery vans for Amazon.com Inc Amazon due to a lack of parts.

While Rivian assures that this shortage will not affect its SUV and truck product line, investors are wondering whether the company can keep up with Amazon’s bulk order of 100,000 vans by 2030.

Amazon, which owns a 16 percent stake in Rivian, downplayed the disruption, but the market appears unconvinced by that optimism.

Rivian’s problems are further exacerbated by the loss of its production manager. Tim Fallonto Jeep.

With Fallon on the way to Stellantis NV STLA As production leader in North America, Rivian’s change in leadership could herald further turbulence in the future. The company has already revised its production estimates for 2024 down from 67,170 to around 50,000 vehicles and cut 11% of its workforce.

Also read: Rivian production manager Tim Fallon moves to European car manufacturer Stellantis

Technically, Rivian’s stock doesn’t look any better.

Chart created with Benzinga Pro

The Moving Average Convergence Divergence (MACD) indicator is at minus 0.56 and with an RSI of 38.54 the stock appears oversold.

However, the Bollinger Bands offer some hope as there may be a recovery from the lower band.

But for now, Rivian remains on the pessimistic side and investors are likely to hit the brakes until the electric car maker shows it can overcome its current hurdles.

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Photo: Courtesy of Rivian