Rivian stocks are slipping while older automakers are screwing up EV targets

January 6 (Reuters) – Rivian Automotive Inc (RIVN.O) the share fell briefly during the listing on Thursday in a sale with other electric car manufacturers as the race for market share intensifies and older companies increase their own production.

Rivian fell as low as $ 75.13, below its $ 78 listing price in November for the first time. The stock received a loss and ended down around 3% to $ 87.33.

Competing electric car manufacturers Tesla Inc (TSLA.O), Lordstown Motor (RIDE.O) and Fisherman (FSR.N) fell between 2.1% and 3.3%, with high-flying growth stocks under pressure from expectations that the US Federal Reserve could raise interest rates faster than previously thought.

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“Rivian investors need to keep nearby expectations in check,” Morgan Stanley analyst Adam Jonas warned in a note to clients. “Tesla has shown us the extremely difficult way to increase the production of electric cars. You can not get the reward without the pain.”

Jonas rates Rivian’s stock “overweight”.

Rivian’s share has fallen about 14% since the start of Wednesday, when Amazon.com Inc, one of Rivian’s largest investors, said it was merging with carmaker Stellantis NV (STLA.MI).

The two companies will develop cars and trucks with Amazon software and install electric vans made by Stellantis on Amazon’s delivery network. Read more

US stocks in Stellantis rose 2.5% on Thursday and have now risen 11% in 2022.

Rivian signed a contract in 2019 to build 100,000 electric vans for Amazon by 2025. But now the business of electric commercial vehicles, an important market for Rivian, is becoming more crowded.

Rivian said Thursday that it expects Amazon to buy cars from many providers and that its partnership with Amazon is intact.

General Motors Co (GM.N) electric commercial vehicles, BrightDrop, has signed agreements with Walmart Inc. (WMT.N) and FedEx Corp (FDX.N), while Ford Motor (UN) is expected to deliver its E-Transit van to customers this year.

Meanwhile, General Motors Co (GM.N) this week unveiled its electric Chevrolet Silverado pickup, while Ford said it is increasing production of the F-150 Lightning. Both pickups would compete with the Rivians R1T at a time when it is struggling to stick to delivery dates due to chip supply constraints.

Ford’s share has risen 18% year to date and is now at its highest level since 2001. GM has risen 7% in 2022.

“(Rivian) investors are probably a little appalled that the old industry is making a comeback,” said Guidehouse Insights analyst Sam Abuelsamid.

Ford, GM overtakes Rivian in market value

Rivian, which lost $ 1.2 billion in the third quarter, is expected to deliver cars to customers this year. Production at its second plant in Georgia, in which it has invested $ 5 billion, is not likely to begin until 2024.

“It’s still kind of unproven in terms of the investability of it as a stock compared to some of the other names like Tesla and arguably Ford,” said David Keller, chief marketing strategist at StockCharts.com.

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Reporting by Nivedita Balu and Akash Sriram in Bengaluru Further reporting by Eva Mathews and Tiyashi Datta, and by Noel Randewich in Oakland, California. Edited by Nick Zieminski and Matthew Lewis

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