Shares of Rivian Automotive Inc. rose Monday, but only after it just suffered its worst week since going public, in the wake of the electric-vehicle makerâs disappointing earnings report.
That selloff has been pretty painful to some high-profile corporate investors in the company.
Amazon.com Inc.
AMZN,
is Rivianâs largest shareholder with a stake of about 158.4 million shares, or 16.6% of the shares outstanding.
Last weekâs selloff in Rivianâs stock
RIVN,
lowered the value of Amazonâs investment by $986.6 million. And the stockâs 55.8% drop year to date has shaved about $2.07 billion off the value of Amazonâs investment.
In November 2023, Rivian had ended its exclusivity deal with Amazon to provide electric, last-mile delivery vans.
Meanwhile, Ford Motor Co.
F,
which still owns about 10.5 million shares of Rivian, lost about $65.4 million on its investment last week, and has lost about $137.4 million year to date.
Ford had originally bought 101.95 million shares of Rivian, or an 11.4% stake, in 2021, but then disclosed a year ago that it lowered that stake to 1.15%.
Rivianâs stock rallied 3.1% in morning trading Monday, after closing Friday at a record low of $10.07. The 38.2% plunge last week surpassed the previous record for a weekly decline of 25.3% for the week ending March 4, 2022.
Truistâs Jordan Levy became the latest analyst to pull their bullish call on Rivianâs stock, as he downgraded it to hold on Monday. He slashed his price target by 58%, to $11 from $26.
Levy touted the companyâs âstrong executionâ and said he remains upbeat on the value of Rivianâs brand, but said he sees âimminent capital needs continuing to put a ceiling on sharesâ as the company enters and extended plant shutdown.
Also read: A new Rivian bear emerges after rare two-notch downgrade; EV maker âheading off-road.â
Rivian had reported last Wednesday a wider-than-expected fourth-quarter loss and provided a 2024 production outlook that was well below forecasts, as Truistâs Levy said the effect of the planned shutdown of manufacturing to upgrade production will be âworse than anticipated.â
No less than four of the 28 analysts surveyed by FactSet who cover Rivian have downgraded the stock since the quarterly results. But the majority, or 15 analysts, remain bullish, while nine are neutral and four are bearish.
Rivianâs stock went public in November 2021, at a valuation of about $77 billion. The companyâs market capitalization at current stock prices was about $9.9 billion.
Rivianâs stock has plunged 55.8% year to date, while the Global X Autonomous & Electric Vehicles ETF
DRIV
has shed 3.9% and the S&P 500 index
SPX
has gained 6.8%.
