Why Rivian Shares Dropped Below $30 Friday

What happened

Rivian Automotive (NASDAQ: RIVN) shares broke below the $30 barrier today for only the third time in the past several months. As of 3:20 p.m. ET, the stock was trading slightly off the lows of the day, down 6%.

So what

The stock dropped below $30 two prior times recently, when investors were worried the company might once again drop its 2022 production estimates. But when Rivian reported its third-quarter results last week, it had mostly good news for shareholders. Today's dip had more to do with the competition than Rivian's business itself, which could turn out to be even more challenging to the company's future success.

Now what

Rivian is focusing on the pickup truck and SUV consumer segment, which separates it from most other EV start-ups. Even sector leader Tesla doesn't expect to get into the pickup truck business until sometime next year. But an update from General Motors yesterday could mean significant competition for Rivian is coming ahead of schedule.