Why Rivian Stock Plunged 75% in the First Half of 2022
Rivian Automotive (NASDAQ: RIVN) stock ended 2021 with a market capitalization of nearly $94 billion. Within the next six months, Rivian's market cap was all but wiped out -- the electric vehicle (EV) stock plunged 75% in the first half of 2022, according to data provided by S&P Global Market Intelligence.
Although investors started dumping growth stocks from early 2022 in anticipation of rising interest rates and a slowdown in the economy, Rivian's free fall had deeper underlying concerns behind it. Unfortunately, the company isn't out of the woods yet.
One of the biggest reasons Rivian's initial public offering (IPO) in November 2021 was so hyped was the EV maker's relationship with Amazon. Rivian had an order for 100,000 units of its electric delivery vans (EDVs) from the e-commerce giant, which it expected would bring in a significant portion of its revenue in the near term. So when Amazon struck a deal with Stellantis in January to purchase its battery EVs in 2023, investors in Rivian started to feel nervous.
Source Fool.com
