Aptiv Stock Seeing Headwinds from Rivian-Volkswagen Deal

Electric vehicle (EV) part manufacturer Aptiv PLC (NYSE:APTV) stock is dropping to four-year lows today, down 8.3% at $67.25 at last glance, after Piper Sandler downgraded the stock to "underweight" from "neutral." The firm also added in a price-target cut to $63 from $78, citing risk from the Rivian-Volkswagen venture. More specifically, EV name Rivian Automotive (RIVN) secured up to $5 billion in funding from Volkswagen Group, putting pressure on its sector peers and sending RIVN up 30% at last look. 

Headed for its largest single-day percentage loss since November, APTV is down 25.3% year to date. A good portion of the 2024 deficit can be accounted for in the stock's early-June spiral, which saw pressure at its 20-day moving average. The equity is also in "oversold" territory, per its 14-day relative strength index (RSI) of 24.1. 

Over in the options pits, APTV is seeing seven times the intraday average options volume. The July 70 call is the most popular, with new positions being bought to open there. Options traders are pricing in low volatility, per the security's Schaeffer's Volatility Index (SVI) of 29%, which ranks in the 19th percentile of its annual range.