Technology

Rivian shares continue to dive following Amazon-Stellantis deal

In this article

R.J. Scaringe, Rivian’s CEO, introduces the world to his company’s R1T all-electric pickup and all-electric R1S SUV at the Los Angeles Auto Show in Los Angeles, California, November 27, 2018.
Mike Blake | Reuters

Shares of Rivian were down another 10% to a new 52-week low on Thursday, a day after automaker Stellantis announced that Amazon would provide its cloud services and in-car dashboard software.

Rivian stock is now down more than 21% for the week, after falling 11% during Wednesday’s trading session, and is about 54% off its high on Nov. 16. If it holds until markets close, the move is set to shave more than $9 billion from Rivian’s market cap, bringing it to about $72 billion. It’s now priced only about a dollar above its $78 IPO price.

Stellantis, formerly known as Fiat Chrysler, also announced that Amazon would be the first commercial customer of its Ram ProMaster battery-electric vehicle.

Rivian, an electric vehicle company backed by Amazon, debuted on the Nasdaq just two months ago. Rivian had named Amazon its preferred cloud provider and is contracted to make 100,000 vehicles for the company by 2030.

An Amazon spokesperson reiterated the company’s support for Rivian in a statement to CNBC on Wednesday.

“We always knew that our ambitious sustainability goals in our last mile operations would require multiple electric delivery van providers,” the spokesperson said in a statement. ”We continue to be excited about our relationship with Rivian, and this doesn’t change anything about our investment, collaboration, or order size and timing.”

-CNBC’s Jordan Novet contributed to this report.

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WATCH: Why EV investors can’t ignore Rivian or Apple, according to analysts

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