Rivian Automotive Inc. experienced a significant decline in its stock shares, resulting in the worst week since its initial public offering. This drop was largely influenced by the company’s recent earnings report, causing concern among investors.
One of Rivian’s most prominent corporate investors is Amazon.com Inc., which holds a substantial stake of 16.6% with approximately 158.4 million shares outstanding. As a result of last week’s selloff, Amazon saw a decrease in the value of their investment by $986.6 million and has lost about $2 billion due to Rivian’s year-to-date stock decline.
In November 2023, Rivian terminated its exclusive agreement with Amazon for providing electric delivery vans for last-mile deliveries. The company has also announced plans to open a permanent location at 1001 Bellevue Square after operating from temporary pop-up locations in Seattle . Additionally, as part of cost-cutting measures, Rivian will be reducing its salaried workforce by 10%.
This development has resulted in significant losses for Amazon on their investment with Rivian and highlights potential challenges faced by both companies moving forward.
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