Electric vehicle maker Rivian Automotive saw its shares tumble 8.4% to $15.02 in after-hours trading, even after the company reported better-than-anticipated first-quarter results. The sharp decline underscores persistent investor anxiety over the company's cash consumption rate and path to sustainable profitability, overshadowing an otherwise positive earnings release.
Trading volume for Rivian surged 78% above its average, indicating heightened market attention. Despite the selloff, the company reported a 20% increase in deliveries and revenue that exceeded Wall Street expectations. Management reiterated plans to ramp up production of the R2 SUV at its Georgia facility, targeting an annual output of 300,000 units. However, the market's focus remained on the heavy capital expenditures required to achieve those goals.
In contrast, shares of fellow EV makers Tesla and Lucid Group both advanced more than 2% during the same session, reflecting a mixed sentiment across the electric vehicle sector. Tesla continues to benefit from its dominant market position and expanding infrastructure, while Lucid gains from its luxury niche and recent production milestones.
Beyond the EV space, the broader market is grappling with a range of macroeconomic signals. Economist Gary Shilling has forecast a potential recession and a 20% decline in U.S. stock markets by year-end, citing persistent inflation, tightening monetary policy, and slowing economic growth. His warning adds to the cautious tone among investors who are already navigating elevated volatility.
Meanwhile, Intel's stock has surged over 350% in the past year, driven by strategic investments in AI infrastructure and strong demand for its CPUs. The U.S. government's $8.9 billion injection, along with major investments from Nvidia and SoftBank, have bolstered Intel's balance sheet. However, skeptics point to execution risks in its foundry and advanced packaging businesses, questioning the sustainability of the rally.
In the cryptocurrency space, Bitcoin climbed above $78,000, approaching the $80,000 mark, as the Senate advanced the Clarity Act, a significant regulatory development for crypto yield products. The legislation bans stablecoin issuers from offering yield based solely on reserve holdings but permits activity-based reward programs, a move supported by Coinbase. Dogecoin also rose nearly 10% for the week.
Other notable market movers included Corteva, which has gained 30.4% over the past year but is considered undervalued by some analysts, with a DCF analysis suggesting a 13.5% upside. Apple shares rallied on a strong quarterly report, pushing the S&P 500 above 7,200. Meanwhile, oil prices remained elevated with Brent crude above $100 per barrel, adding to inflationary pressures and geopolitical uncertainty.
Investors are closely watching the potential shift in Federal Reserve leadership, with Kevin Warsh likely to succeed Jerome Powell. Warsh is expected to adopt a tougher stance on inflation, targeting a strict 2% PCE index and aggressively reducing the Fed's $6.8 trillion balance sheet, which could challenge current market expectations and pressure growth stocks.
