After hurting Amazon and Ford, electric truck maker Rivian falls again

The glow faded further on Monday for electric truck maker Rivian Automotive, whose November IPO was the biggest of 2021 and the sixth-biggest in U.S. history.

Less than two weeks ago, Rivian was responsible for quarterly losses reported by both Amazon and Ford Motor Co., which had each invested billions to see Rivian’s value plummet earlier this year.

On Monday, Rivian’s share price fell further following a report that Ford was dumping 8 million shares of the company.

Rivian is also newly caught in the Georgia governor’s race for a record-breaking incentive package for a new manufacturing facility.

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Rivian shares are publicly listed on Nasdaq on November 10, 2021.

Why is Rivian a big deal?

The electric truck maker has an order from Amazon for 100,000 delivery vans and more than 80,000 other orders.

As he burst onto the scene at a 2018 Los Angeles Auto Show-related event, Rivian was seen as a potential Tesla rival.

Ford became interested in battery development with Rivian and at some point planned to jointly develop a pickup.

In March, Rivian acknowledged significant production challenges due to supply chain issues that have plagued automakers. It said it would only be able to manufacture 25,000 vehicles this year.

Raise a lot of money then fall

Rivian’s IPO last year raised $11.9 billion. The stock price hit a high of $172.01 on November 16. By the end of the year, it had fallen to $103.69.

The stock fell further since then, closing the first quarter at $50.24, costing Amazon $7.6 billion in the quarter and $5.5 billion at Ford.

Rivian closed Monday at $22.78, down nearly 21% for the day.

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Millions of shares sold, report says

The “lock-in” period for early investors and company insiders expired on Sunday, and CNBC reported that Ford was set to sell 8 million of its 102 million shares. Ford declined to comment on Monday.

Ford would sell its shares through Goldman Sachs, according to the report, while JPMorgan Chase also planned to sell between 13 and 15 million shares for an unknown investor.

Amazon owns about 17.7% of Rivian, while Ford owns 11.4%.

Amazon was not to sell, Bloomberg reported.

Rivian incentives play into Georgian politics

After Georgia state and local governments this month approved $1.5 billion in incentives for Rivian to build a 7,500-job, $5 billion electric vehicle factory east of Atlanta former senator David Purdue criticized the deal, the Associated Press reported.

Purdue is running against Governor Brian Kemp in the May 24 GOP primary, with the winner likely facing Democrat Stacey Abrams for governor in the general election.

Perdue pointed out that “liberal billionaire George Soros” is an investor in Rivian.

“Think of how many small businesses in Georgia could be helped with that kind of money, instead of lining George Soros’ pockets,” Perdue said. “Kemp handed over the farm to a woke corporation for something the locals don’t even want, and hard-working Georgians have to foot the bill.”

Kemp, in a debate on Sunday, reiterated his support for Rivian. “I support 7,500 good-paying jobs in rural Georgia at an auto manufacturing plant,” Kemp said.

Randy Essex is the USA TODAY Money Team Editor: [email protected]; @randyessex on Twitter. Subscribe to our free Daily Money newsletter for personal finance advice and business news Monday-Friday mornings.

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