Rivian’s (RIVN) stock closed down 3% on Thursday at a new low. Shares had dropped as much as 16% during the trading session, briefly dipping below their IPO price of $78.
Thursday’s decline added to recent losses for shares of the electric vehicle (EV) startup. On Wednesday Amazon (AMZN), a Rivian investor, agreed to buy battery operated delivery vans from competitor Stellantis NV (STLA). Rivian already has a deal with Amazon to provide delivery vehicles, but the e-commerce giant can work with other manufacturers as well, according to a regulatory filing.
Tech growth names and risk assets have been under pressure this week over concerns of Fed rate hikes later this year. The Amazon deal with Rivian’s competitor put more pressure on a company with a massive valuation which has yet to make substantial deliveries or turn a profit.
It also underscores the increasing competition among the red-hot electric vehicle space, both in terms of start-ups and legacy traditional automakers.
On Wednesday, Japanese electronics and entertainment company Sony announced it is creating an operating company called Sony Mobility to explore an entry in the EV market.
Gov. Brian Kemp walks past a Rivian electric truck after announcing that electric truck maker Rivian Automotive will build a $5 billion battery and assembly plant east of Atlanta projected to employ 7,500 workers, Thursday, Dec. 16, 2021, in Atlanta. (AP Photo/John Bazemore)
Tech giant Apple (AAPL) is also reportedly working on getting into the electric vehicle and autonomous space.
Rivian went public last November, reaching an $86 billion valuation right out of the gate. Comparatively, that market cap was about the same as GM (GM), and slightly less than Ford’s (F) at the time. Both of those legacy automakers are rapidly working on their electric vehicle plans.
This content is not available due to your privacy preferences.
A couple of days later, Rivian shares were trading around $129 each. The Irvine, California–based electric vehicle startup had briefly topped a valuation of $110 billion.
For perspective, Tesla, which went public in 2010, didn’t reach a $100 billion valuation until January of 2020.
Ines is a markets reporter covering stocks from the floor of the New York Stock Exchange. Follow her on Twitter at @ines_ferre