Rivian Hits New Low, Stock Plunges Nearly 20% As Early Investors Offload Shares In ‘Jittery Market’

Rivian's stock tanked by almost 20% and hit a new low on Monday as the company's IPO lockup period ended, giving some investors their first chance to sell shares.

Rivian's stock fell to a new all-time low of around $23 per share, as some of the startup's early investors sold shares on Monday after the company's IPO lockup period expired.

CNBC reported over the weekend that one of Rivian's two biggest corporate investors, Ford, would sell 8 million of its shares in the electric-vehicle maker.

According to CNBC, an unnamed investor is looking to sell between 13 million and 15 million shares of Rivian.

Amazon is Rivian's biggest investor with an 18% stake, but few analysts expect the e-commerce giant to sell its shares as it has signed a deal for 100,000 electric vans.

After going public at a valuation of $90 billion, Rivian saw its stock surge as high as $179 per share before crashing down to earth.

Even as Rivian struggles to ramp up production of its electric pickups and SUVs, most Wall Street analysts maintain a buy rating on the stock and remain confident that it will eventually bounce back.

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The report of Ford selling 8 million shares is not what any Rivian investor would want to see.

Key Background:

Rivian's stock has continued to hit new lows in recent months as investors turn away from speculative growth and technology stocks. The electric-vehicle startup reported lackluster quarterly earnings in early March, in which the company reported a nearly $5 billion loss in 2021. Rivian predicted that there would be just 25,000 electric pickup and SUVs this year.

Contra:

Despite the recent struggles, analysts at CFRA maintained a hold rating on Rivian stock. The reports that Ford is planning to sell shares just days ahead of Rivian's first quarter earnings release is adding significant downward pressure to the stock. He says the news is not surprising, given that the two companies ended their partnership to develop a vehicle last November and that Ford will begin deliveries of the F-150 Lightning.

Surprising Fact:

The net worth of Rivian's founder and CEO fell below $1 billion in March. His fortune was down to $3.4 billion in October 2021.

Rivian's stock is hitting new lows after weak earnings.

Rivian has a $4.7 billion loss and sees a curb on EV output.

Rivian shares fall to record lows.

Here's why Rivian can succeed, according to these major firms.