American startup Rivian, which in a matter of days became the third largest automaker by market value, saw shares this Thursday temporarily drop below their initial public offering price. The downfall of the electric car maker on the stock exchange comes after Amazon, the company’s second-largest shareholder, announced that it would buy electric trucks from a competitor Stellantis, donations from Peugeot and Chrysler. The announcement surprised the market and sent Rivian shares down nearly 16% to $75.13 this Thursday, down from the company’s first price ($78 per share). The company was trading below the initial public offering (IPO) price for a while, but quickly pared losses and returned to trading above the IPO price, although it continued to slide — ending the day with a 2.98% return at $87.33. To calm things down, Rivian declared the agreement between Amazon and Stellantis to be “good news” for the auto industry, as it ramps up efforts to reduce carbon dioxide emissions into the atmosphere through fewer vehicles and pollutants. Rivian also ensured that the partnership with Amazon is “sound” and that it hopes that “Buy cars from many suppliers.”
However, the data was not enough to return the company to stock market earnings. Wednesday, the day of the partnership between Amazon and Stellantis, já a Rivian stock closed 11% lower as the stock fell to $90.
The partnership between the retail giant and Stellantis is centered on developing “a series of IT products and services that are fully integrated into the digital world of users,” i.e. vehicle software, “with ‘over-the-air’ (distance) updates, which will add value over time.” In addition, Amazon will be the first retailer to market the Stellantis Ram Promaster electric truck.
cWith 652 units produced as of December 15 and just 386 vehicles delivered, Rivian was one of the startups estimated to be the fastest on the stock market, with a 30% jump in just over a month. Amazon is one of the companies that has ordered electric cars from Rivian (100 thousand in total).
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