Rivian Automotive Inc (NASDAQ:RIVN) shares are trading lower Wednesday alongside several companies in the broader consumer discretionary space amid overall market weakness as investors digest the latest U.S. inflation data, which came in higher-than-expected.
The consumer price index increased 8.3% in April from the prior year, which was lower than the 8.5% increase in March. However, the number came in above the Dow Jones estimate of 8.1%. Although the CPI number was lower than it was in March, 8.3% is still near the highest levels in 40 years.
The core CPI number, which excludes energy and food costs, rose 6.2% in April, which was above estimates for a 6% increase. The Federal Reserve plans to continue to hike rates until inflation falls significantly. The Fed generally aims to maintain inflation around 2% per year.
Rivian is set to announce its first-quarter financial results after the market closes. The company designs, develops and manufactures category-defining electric vehicles and accessories and sells them directly to customers in the consumer and commercial markets.
RIVN Price Action: Rivian shares are making new 52-week lows on Wednesday.
The stock was down 15.3% at $19.31 at press time.
Photo: courtesy of Rivian.