Rivian shares have been hit particularly hard by the ongoing sell-off across the stock market, falling below its IPO price for the first time.
The electric car manufacturer went public in November at $78 per share but prices briefly fell to as low as $75.13 on Thursday, January 6. They rebounded to $87.33 at the end of trading, although that is still significantly down from a peak of over $170 in mid-November.
“Rivian investors need to keep near-term expectations managed,” Morgan Stanley analyst Adam Jonas told clients in a statement. “Tesla has shown us the extremely difficult path to ramping EV manufacturing. You can’t have the reward without the pain.”
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Rivian’s shares were also hit hard by an announcement from Amazon that it has teamed up with Stellantis to develop cars and trucks with Amazon software. It will also use electric vans from the Stellantis family in its delivery network. Rivian also has a contract to supply 100,000 electric delivery vans to Amazon by 2025 but the deal with Stellantis proves that the market is becoming more crowded.
“(Rivian) investors are probably getting a little spooked by the legacy industry making a comeback,” said Guidehouse Insights analyst Sam Abuelsamid, per Reuters. “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,” added chief market strategist from StockCharts, David Keller.
