Electric vehicle startup Rivian stocks are down 15% in the past two days, hitting a new low after Amazon signed a deal to buy electric vans from rival automaker Stellantis and investors continued to exit high-growth stocks amid rising interest rates.
After Rivian’s stock fell 11% on Wednesday, it fell another 4% to around $ 86 per share on Thursday.
The electric vehicle maker’s shares briefly fell below Rivian’s initial IPO price of $ 78 per share on Thursday when the company went public last November with a valuation of $ 90 billion.
Stellantis, formerly known as Fiat Chrysler, first announced the sale of its Ram ProMaster electric vans to Amazon starting in 2023.
News of the deal was a major blow to Rivian stock: Amazon is the second largest shareholder and the purchase of 100,000 electric vans from Rivian was a big selling point during the electric vehicle maker’s initial public offering.
The decline in Rivian’s shares comes as competition within the electric vehicle industry intensifies as more legacy automakers like Ford, General Motors, and many others increase their investments in the sector.
Electric vehicle company stocks – along with other high-growth stocks – have come under heavy pressure so far in 2022 as investors leave companies with high valuations and uncertain future profitability amid rising interest rates.