Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Rivian stock skids as legacy automakers rev up EV targets

Stock MarketsJan 06, 2022 05:41PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. FILE PHOTO: A Rivian R1T pickup, the Amazon-backed electric vehicle (EV) maker, is driven outside the Nasdaq Market site during the company’s IPO in Times Square in New York City, U.S., November 10, 2021. REUTERS/Brendan McDermid

By Nivedita Balu and Akash Sriram

(Reuters) -Rivian Automotive Inc's stock briefly tumbled below its IPO price on Thursday in a selloff along with other electric vehicle makers as the race for market share intensifies and legacy companies ramp up their own production.

Rivian fell as low as $75.13, below its November initial public offering price of $78 for the first time. The stock pared losses and ended down about 3% at $87.33.

Competing EV makers Tesla (NASDAQ:TSLA) Inc, Lordstown Motor and Fisker fell between 2.1% and 3.3%, with high-flying growth stocks under pressure from expectations the U.S. Federal Reserve could raise interest sooner than previously thought. [.N]

"Rivian investors need to keep near-term expectations managed," Morgan Stanley (NYSE:MS) analyst Adam Jonas cautioned in a note to clients. "Tesla has shown us the extremely difficult path to ramping EV manufacturing. You can’t have the reward without the pain."

Jonas rates Rivian's stock "overweight."

Rivian's stock has slumped about 14% since the start of Wednesday, when Inc (NASDAQ:AMZN), one of Rivian's biggest investors, said it teamed up with carmaker Stellantis NV.

The two companies will develop cars and trucks with Amazon software and deploy electric vans made by Stellantis on Amazon's delivery network.

U.S. shares of Stellantis rose 2.5% on Thursday and are now up 11% in 2022.

Rivian signed a contract in 2019 to build 100,000 electric delivery vans for Amazon by 2025. But now the electric commercial vehicle business, a vital market for Rivian, is becoming more crowded.

Rivian said on Thursday it expects Amazon to buy vehicles from many providers and that its partnership with Amazon is intact.

General Motors Co (NYSE:GM)'s electric commercial vehicle business, BrightDrop, has signed deals with Walmart (NYSE:WMT) Inc and FedEx Corp (NYSE:FDX), while Ford Motor (NYSE:F) is expected to deliver its E-Transit cargo van to customers this year.

Meanwhile, General Motors Co this week unveiled its electric Chevrolet Silverado pickup, while Ford said it is ramping up production of F-150 Lightning. Both pickups would compete with Rivian's R1T at a time it is struggling to stick to delivery dates due to chip supply constraints.

Ford's stock has soared 18% year to date and is now at its highest level since 2001. GM has rallied 7% in 2022.

"(Rivian) investors are probably getting a little spooked by the legacy industry making a comeback," said Guidehouse Insights analyst Sam Abuelsamid.

Rivian, which lost $1.2 billion in the third quarter, is expected to deliver cars to customers this year. Production at its second plant in Georgia, in which it has invested $5 billion, is likely to begin only by 2024.

"It's still sort of unproven in terms of investability of that as a stock versus some of the other names like Tesla, and arguably Ford," said David Keller, chief market strategist at

Rivian stock skids as legacy automakers rev up EV targets

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email