$RIVN news from CNN Business: Rivian has both good and bad news at end of tough day for EV stocks

The gain in reservations was notable after electric car maker Lucid reported late Tuesday that the number of reservations for its EVs had fallen to 34,000 from 37,000 in the previous quarter’s report.

That news sent Lucid (LCDX) shares tumbling 17% for the day and helped drag down shares of both Rivian and Chinese EV maker Nio (NIO) by 12% each in regular hours US trading.

Leading EV maker Tesla (TSLA) also had shares fall 7%, though that could well have been more influenced by news that CEO Elon Musk had sold nearly $4 billion worth of Tesla (TSLA) shares since he closed the deal to buy Twitter two weeks ago.

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End of day $RIVN Daily, Weekly, and Monthly charts are all showing breakdowns through important uptrend lines. This broken support will signal to shorts:



I haven’t looked at the $LCID charts for weeks. Today, it had a very bearish breakdown through a downtrendline in a descending wedge pattern after also breaking horizontal supports on all charts. Nasty looks.

$LCID daily, weekly, and monthly charts



Motley Fool headline for $RIVN (they give thumbs up) and $LCID & $NIO (they wave the red flags:

Avoid Nio

If you just looked at the revenue of Nio (NIO -12.40%), you’d think it was a great stock to own. Revenue is up 447% in the last three years, and its stock price is up 400%. The EV manufacturer has grown its market share in China every year since 2019, hitting 0.43% in 2021.

But there are a few problems with Nio. It is a Chinese company, which makes it much riskier than other EV stocks based in the U.S. and capitalist nations. Chinese political leaders have recently increased their crackdown on corporations and the country’s brewing conflict with the U.S. has intensified. This is not a situation where foreign investors will likely get a good outcome.

On top of the political risk, Nio is still highly unprofitable, losing 28 billion RMB last quarter even though it generated over 100 billion RMB in revenue. Its vehicle profit margin is moving in the wrong direction, hitting 16.7% last quarter versus 18.1% a year ago.

The daily, weekly, and monthly charts for $NIO show it breaking down like others we’'ve already showcased in this thread:



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