This month, automaker Rivian Automotive (RIVN) announced laying off 6% of its workforce in an effort to conserve cash as it braces for an industry-wide price war. Preserving cash is one of the main priorities for the company as it had faced a year of huge losses. Thus, we wanted to scrutinize the fundamentals of RIVN to see if the stock should be avoided now.
The layoff move follows recent price cuts by its rivals, Tesla Inc. (TSLA) and Ford Motor Co (F), in an effort to win over smaller EV makers amid increasing competition in this space. F cut prices of its electric Mustang Mach-E crossover weeks after TSLA announced similar plans of reducing prices of its Model 3 and Model Y vehicles.
