Rivian’s investors prove an expensive ride

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.)

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