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Rivian shares fall for second day after Amazon-Stellantis . deal


RJ Scaringe, CEO of Rivian, introduces the world to his company’s R1T all-electric pickup truck and R1S all-electric SUV at the Los Angeles Auto Show in Los Angeles, California, today. November 27, 2018.

Mike Blake | Reuters

Shares of Rivian fell another 10% to a 52-week low on Thursday, a day later car manufacturer Stellantis announced that Amazon will provide cloud services and in-car dashboard software.

Rivian stock is now down more than 21% for the week, after down 11% in Wednesday’s trading. , bringing it to about $72 billion. It’s currently priced at just about a dollar above its $78 mark IPO price.

However, there are other factors that affect stock prices. Investors are pivot away from tech stocks have distant profit prospects. EV stock is among a group of companies with high valuations and uncertain future profitability, making them riskier bets as interest rates rise. Investors are selling off their once-loved babies and moving into more stable companies with growing profits.

Stellantis, formerly known as Fiat Chrysler, also announced that Amazon will be the first commercial customer of their Ram ProMaster battery car.

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

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

A spokesperson said in a statement: “We have always known that our ambitious sustainability goals in our last mile operations will require multiple suppliers of electric delivery vans. . “We continue to be excited about our relationship with Rivian, and it doesn’t change anything about our investment, partnership, or the size and timing of our orders.”

Jordan Novet of -CNBC contributed to this report.

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SEE: Why EV Investors Can’t Ignore Rivian or Apple, According to Analysts

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