Rivian’s investors prove an expensive ride

2 minute read

A Rivian R1T pickup is parked outside the Nasdaq Market site in Times Square in New York City, U.S., November 10, 2021. REUTERS/Brendan McDermid

Register now for FREE unlimited access to Reuters.com

NEW YORK, Jan 19 (Reuters Breakingviews) - Rivian Automotive (RIVN.O) caught a wave of electric vehicle enthusiasm read more with its initial public offering last November, climbing to a valuation of over $90 billion in its first day of trading. That was good news for shareholders Amazon.com and Ford Motors (F.N), which recorded an $8.2 billion gain on its stake in the fourth quarter.

Rivian’s blue-chip backers haven’t been totally supportive, however. Amazon was set to acquire electric delivery vans from the company. But when the e-commerce giant disclosed earlier this month that it would also buy vans from Peugeot maker Stellantis (STLA.MI), Rivian shares fell 11% read more . Ford has reaped benefits as its own EV plans bear fruit: over the past month, the company’s market value has vaulted to nearly $100 billion. Meanwhile shares in Rivian have tumbled to around $73 from a peak of over $170, lowering its worth to around $66 billion. There’s no such thing as a free ride. (By Jonathan Guilford)

(The author is a Reuters Breakingviews columnist. The opinions expressed are their own.)

Register now for FREE unlimited access to Reuters.com

Follow @Breakingviews on Twitter

Capital Calls - More concise insights on global finance:

P&G hits a Covid-19 high note read more

Lagging UK stocks are red meat for activists read more

EQT sends message to private-equity rival CVC read more

Richemont gets more leverage in YNAP deal read more

Dan Loeb’s gadfly circles again read more

Siemens sale puts Atlantia in high-tech fast lane read more

Register now for FREE unlimited access to Reuters.com
Editing by Peter Thal Larsen and Sharon Lam

Our Standards: The Thomson Reuters Trust Principles.

Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.