Jan 6 (Reuters) - Rivian Automotive Inc's stock
briefly tumbled below its IPO price on Thursday in a selloff
along with other electric vehicle makers as the race for market
share intensifies and legacy companies ramp up their own
Rivian fell as low as $75.13, below its November initial
public offering price of $78 for the first time. The stock pared
losses and ended down about 3% at $87.33.
Competing EV makers Tesla Inc, Lordstown Motor
and Fisker fell between 2.1% and 3.3%, with
high-flying growth stocks under pressure from expectations the
U.S. Federal Reserve could raise interest sooner than previously
"Rivian investors need to keep near-term expectations
managed," Morgan Stanley analyst Adam Jonas cautioned in a note
to clients. "Tesla has shown us the extremely difficult path to
ramping EV manufacturing. You cant have the reward without the
Jonas rates Rivian's stock "overweight."
Rivian's stock has slumped about 14% since the start of
Wednesday, when Amazon.com Inc, one of Rivian's biggest
investors, said it teamed up with carmaker Stellantis NV
The two companies will develop cars and trucks with Amazon
software and deploy electric vans made by Stellantis on Amazon's
U.S. shares of Stellantis rose 2.5% on Thursday and are now
up 11% in 2022.
Rivian signed a contract in 2019 to build 100,000 electric
delivery vans for Amazon by 2025. But now the electric
commercial vehicle business, a vital market for Rivian, is
becoming more crowded.
Rivian said on Thursday it expects Amazon to buy vehicles
from many providers and that its partnership with Amazon is
General Motors Co's electric commercial vehicle
business, BrightDrop, has signed deals with Walmart Inc
and FedEx Corp, while Ford Motor is expected to
deliver its E-Transit cargo van to customers this year.
Meanwhile, General Motors Co this week unveiled its
electric Chevrolet Silverado pickup, while Ford said it is
ramping up production of F-150 Lightning. Both pickups would
compete with Rivian's R1T at a time it is struggling to stick to
delivery dates due to chip supply constraints.
Ford's stock has soared 18% year to date and is now at its
highest level since 2001. GM has rallied 7% in 2022.
"(Rivian) investors are probably getting a little spooked by
the legacy industry making a comeback," said Guidehouse Insights
analyst Sam Abuelsamid.
Rivian, which lost $1.2 billion in the third quarter, is
expected to deliver cars to customers this year. Production at
its second plant in Georgia, in which it has invested $5
billion, is likely to begin only by 2024.
"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," said David Keller, chief market strategist at
(Reporting by Nivedita Balu and Akash Sriram in Bengaluru
Additional reporting by Eva Mathews and Tiyashi Datta, and by
Noel Randewich in Oakland, Calif.
Editing by Nick Zieminski and Matthew Lewis)