The electric car manufacturer Rivianwhich has barely been on the stock market for half a year (it debuted on November 9 with a value of 78 dollars per share), has become a burden for two of its main investors: Ford and Amazon. Its constant fall in the markets since the maximum peak it reached in November, led to theoval car company to sell eight million Rivian titles last week (representing 0.89% of the outstanding shares of this company).
The company had been received with euphoria by Wall Street in November, with double-digit increases in its first days on the stock market. However, since reaching its highest trading peak, when the share reached $172, the value of the electric vehicle manufacturer has not stopped falling until it has its share at $26.7what it means a collapse of 84.5%.
January was especially hard for Rivian, when Amazon, precisely its second largest investor (it owns 17.74% of the company), announced an agreement with Stellantis for the purchase of electric vans. This was taken by the market as a sign of mistrust of Rivian’s ability to supply the e-commerce giant’s needs. In January alone, the company’s value almost halved, with a 48% drop.
After learning of the agreement between Amazon and Stellantis, and given the punishment that Rivian’s shares were suffering, the e-commerce giant clarified in January that they always knew they would need “several providers of electric delivery vans” to meet their demand. All this has meant that Amazon itself went into losses in the first quarter of this yearwith red numbers of 3,800 million dollars (about 3,648.7 million euros at current exchange rates). Ford, for its part, which has 10.5% of Rivian, lost between January and March 3,110 million dollars (2,986.2 million euros).
international context
The company has disappointed investors with its inability to meet its production targets. In March, the company was forced to announce a 50% cut in its annual production to 25,000 units, compared to the 50,000 originally planned. The international context, with a microchip crisis that is still going on and the rising cost of raw materials due to the war in Ukraine, has played against the electric vehicle manufacturer, which is trying to secure the necessary chips to manufacture its R1T pickups, SUVs R1S and delivery vans for Amazon.
“We remain focused on ramping up production throughout 2022. We believe that supply chain constraints will continue to be the limiting factor in our production”, Rivian stated in a letter to its shareholders last week in which it suffered great volatility on the stock market. The company, which came to be worth more than 153,000 million dollars, marked its lowest historical value last week with 18,554 million dollars (about 17,765 million euros).
At the moment, Rivian only has one production facility in Illinois. (USA) and plans to open another in the state of Georgiafor which you need to invest about 5,000 million dollars (4,800 million euros at current exchange rates).
A spokeswoman for the car company said the electric vehicle maker was aiming to open that plant by the end of 2024, but Rivian said on Wednesday it was considering a 2025 launch date, according to Reuters. The company claims to have enough cash on hand to open the plant in Georgia.
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