Auto Express

Rivian stock drops below IPO price as Detroit electric cars arrive



Shares of Rivian Automotive Inc briefly dipped below their IPO price on Thursday in a larger sell-off among companies. tram Electric vehicle (EV) manufacturers as the race for market share is increasingly fierce with legacy companies ramping up production of electric vehicles.

Shares of Rivian fell as much as 16.5% to $75.13, sliding below its initial price of $78 for the first time, before closing the day at $87.33, falling just under 3 %.

Other electric vehicle manufacturers Tesla, Lucid Group and Fisker also lost ground, with high-flying tech sector valuations coming under pressure amid hawkish signals from the Federal Reserve.

Rivian stock slipped a day after one of its biggest investors, Amazon.com, in partnership with automaker Stellantis.

They will develop cars and vans with Amazon software and deploying electric trucks made by Stellantis on Amazon’s delivery network.

“Amazon has invested a lot of money in Rivian. … It’s been a key factor for many to prove this is a viable company with a relatively unique product in the market,” said Guidehouse. Details analyst Sam Abuelsamid said.

Rivian and Amazon signed a contract in 2019 to build 100,000 delivery electric vehicles for the e-commerce giant by 2025. But now Commercial vehicle business, an important market for Rivian, has more options.

General Motors’ electric commercial vehicle business, BrightDrop, has signed contracts with Walmart Inc and FedEx Corp, while Ford is expected to offer its E-Transit delivery truck customers this year.

Deutsche Bank analyst Emmanuel Rosner said the drop in Rivian shares suggests that investors probably think Amazon will primarily rely on Rivian trucks for its EV fleet, and argues that the latest announcement reduces the odds. their association.

Meanwhile, General Motors announced the launch Chevrolet Silverado electric pickup and Ford is doubling its F-150 Lightning production, both pickup truck will compete with Rivian’s R1T, at a time when it is struggling to stick to delivery dates due to chip supply constraints.

“Investors are probably panicking a bit now that the legacy industry is making a comeback,” Abuelsamid said.

Rivian, which is yet to have solid sales, is expected to deliver the vehicle to customers this year. Production at the second plant in Georgia, with an investment of $5 billion, is likely to begin only in 2024.

“It’s still unproven as to the investment viability of a stock relative to some other big names like Tesla and Ford,” said David Keller, chief market strategist at StockCharts.com.



Source link

news7h

News7h: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, Sports...at the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button