Why Rivian Shares Are Plunging This Week
After Rivian Automotive (NASDAQ: RIVN) went public in November 2021 at an initial public offering (IPO) price of $78 per share, investors poured in and drove shares up over $170. That gave the company a market cap of more than $150 billion before it even started bringing in any real revenue.
But some of the shine has worn off the name, and the stock has been getting hit particularly hard this week. As of Friday morning, Rivian shares were down 20% for the week, according to data provided by S&P Global Market Intelligence.
One of the major appeals that the newly public company had for investors was its relationship with early investor and future customer, Amazon.com (NASDAQ: AMZN). The e-commerce giant led a $700 million investment round in Rivian in 2019 and has agreed to purchase up to 100,000 electric-delivery vans from the electric-vehicle (EV) maker. But EV competition is also ramping up, and news this week that Amazon is also partnering with another EV maker now has some investors selling Rivian stock.
Source Fool.com
