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Shares of Rivian Automotive Inc. rose Monday, following a challenging week triggered by disappointing earnings. The electric vehicle (EV) maker faced its most significant stock drop since going public.
The decline in Rivian's stock had a notable impact on its major investors. Amazon.com Inc., holding
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approximately 16.6% of outstanding shares, saw its investment value drop by $986.6 million last week alone. Year-to-date, the stock's 55.8% decline has resulted in a reduction of about $2.05 billion in the value of Amazon's investment.
Ford Motor Co., retaining around 10.5 million shares of Rivian, lost approximately $65.4 million last week and $136.2 million year-to-date. Ford initially acquired 101.95 million shares in 2021, representing an 11.4% stake, but reduced this to 1.15% a year ago.
Despite closing at a record low of $10.07 on Friday, Rivian's stock rallied 4.1% in Monday morning trading. The 38.2% drop the previous week marked a new record for weekly declines.
Truist analyst Jordan Levy downgraded Rivian's stock to hold from buy and lowered the price target to $11 from $26. He cited the company's "strong execution" and the value of its brand but expressed concerns about ongoing capital needs and an extended plant shutdown.
Rivian's fourth-qurter loss was wider than expected, and its 2024 production outlook fell short of forecasts. The company anticipates $1.75 billion in capital expenditures in 2024 for production facilities, next-generation technologies, and operational expansion.
While four analysts have downgraded Rivian's stock since the quarterly results, the majority (15 analysts) remain bullish, with nine neutral and four bearish. Rivian went public in November 2021 at a valuation of about $77 billion and currently has a market capitalization of approximately $9.9 billion.
Year-to-date, Rivian's stock has fallen 55.3%, compared to a 4% decline for the Global X Autonomous & Electric Vehicles ETF and a 6.6% gain for the S&P 500 index.