- 1 Rivian stock is trading at its lowest price of 13 USD.
- 2 The EV maker is likely to decrease its promised 100,000 vans to Amazon.
Rivian stock (NASDAQ: RIVN) recently hit its lowest trading price since its listing in November 2021. There could be multiple industries and market-specific reasons for this fall. But the EV company’s performance also played a key role that rolled down RIVN stock price to the ground.
The US stock market is struggling to keep up the pace, with most stocks trading in red. For more than a year-long macroeconomic and geopolitical situations held the growth of financial markets globally. Many companies across different sectors have struggled, and the EV space was no exception. Continued supply chain issues resulted in low production, ultimately leading the company to losses.
Rivian and Amazon Adjusting 100,000 Electric Vans deal
Rivian recently reported discussing some revisions in its electric delivery van (EDV) agreement with Amazon (NASDAQ: AMZN). The EV company signed a deal with the e–commerce giant, which also happens to be among its largest shareholder and commercial partner, in 2019.
According to CNBC, there would be an adjustment in the agreement regarding the exclusivity part, most likely to be its elimination. This is supposed to enable the company to focus on new customers by increasing its production of vehicles, including vans and R1 series pickups and SUVs.
Amazon pledged in its agreement to buy more than 100,000 electric delivery vans (EDV) from Rivian by the end of this decade. The resolution came in the wake of its commitment to attaining net zero carbon by 2040 under “The Climate Pledge.” The company made an initial investment of about 700 million USD in Rivian. During the same year, in 2019, the EV maker delivered the very first electric delivery van to its investor company.
Rivian Stock Chart Movement
The already struggling RIVN stock price just hit its lowest trading price of 13.03 USD. Currently, the share price is below both 50-day and 200 EMA, indicating a downtrend. Recently there was also a significant rise in the shares selling volume, higher than its average volume in the past.
The supply chain issues made the EV company suffer all along, and it reflected in its stock price throughout. Though it brought a better-than-expected earnings report in some manner, RIVN still showed no optimism. Despite the results, the stock price fell around 18% during the trading session.
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The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.