The value of Amazon's stake in Rivian was $27 billion. Rivian's IPO took place just before the stock market peaked.
Amazon has taken paper losses on its Rivian stake totaling $11.5 billion for the first two quarters, a stretch during which Rivian lost 75% of its value.
During the second quarter, Amazon recorded a $3.9 billion loss on its Rivian holdings. The report comes a day after Ford took a big writedown.
It is now worth $5 billion.
The Amazon's operations and cash position are unaffected by the markdowns. Rivian might not be able to manufacture delivery vehicles at the speed it promised Amazon if its business goes bad.
The electric delivery vans that Amazon developed with Rivian are starting to be rolled out. Amazon said it expects to have thousands of Rivian vans in more than 100 cities by the end of this year, the first step towards having 100,000 electric delivery vehicles on the road in the U.S.
Rivian has struggled to meet production goals of its R1T and R1S electric vehicles, which are focused more on the consumer market The company cut its production forecast in half in March due to supply chain constraints and issues with its assembly line.
There was some optimism in the third quarter. Since the end of June, the stock price has increased by 29%. On Wednesday, Senate Majority Leader Chuck Schumer, D-N.Y., and Sen. Joe Manchin, D-W.V., said they had reached a deal on a climate spending package.
$369 billion for clean energy is included in the inflation reduction act. Rivian was part of a broader rally in solar and alternative energy.
The first look at Amazon and Rivian's delivery vans.
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