Shares of Rivian and different EV start-ups tank amid inventory sell-off

Rivian electric trucks are parked near the Nasdaq MarketSite building in Times Square on November 10, 2021 in New York City.

Michael M Santiago | Getty Images

shares of Rivian Automotive and other electric vehicle startups rebounded from steep intraday losses on Monday after hitting 52-week or record lows amid a broader market sell-off earlier in the day.

Rivian, Lordstown engines, Faraday future, NEVER, canoe, Nikola Corp. and Electrical solutions for the last mile all down 10% to 18% by 1pm before those losses were erased or narrowed in afternoon trade as broader markets rallied.

Shares in Nikola, Lordstown Motors, Canoo and ELMS all ended in the green, up between 1% and 5.5%. Shares in Rivian closed down about 1%, while shares in Chinese automaker Nio fell 9.1% and Faraday Future pared losses to close 4.7%.

Volatility among pre- and early-sales EV companies followed fluctuations in the broader market as investors decided to take advantage of prices after a sharp sell-off in morning trade.

The Nasdaq Composite Index turned positive after falling as much as 4.9% at the start of the session. The Dow Jones Industrial Average rose 100 points after falling more than 1,000 points in one fell swoop. The S&P 500 traded in the green after briefly falling into correction territory early in the session, more than 10% below its record close on Jan. 3.

Stocks of established automakers such as Tesla, General Motors and Ford engine also reduced losses to close less than 2%.

Shares in Rivian, one of the most-watched EV startups, fell below $60 a share on Monday for the first time since the company’s blockbuster IPO in November. The stock is down 38% since the company went public.

Here’s a look at several EV startups, as well as Tesla and legacy automakers GM and Ford, both of which have announced significant investments in electric vehicles.

— CNBC’s Hannah Miao and Yun Li contributed to this report.

Goal, Rivian, Lucid, TJX, Visa and extra

A shopping cart is seen in a Target store in the Brooklyn neighborhood of New York, United States, on November 14, 2017.

Brendan McDermid | Reuters

Check out the companies that are making headlines in midday trading.

target – The retail giant saw its shares fall 4.7% despite the release Beats on the top and bottom lines. CEO Brian Cornell increasing costs noted Have an impact on the company as it plans to pay these costs instead of passing them on to the customer.

Visa The card giant’s shares fell 4.7% after reports that Amazon will stop accepting payments with UK-issued Visa credit cards starting next year. This change came shortly after Visa increased its interbank fees on transactions between the UK and the European Union. Mastercard, which has also increased its interbank fees between the UK and the EU, fell 4.5% with Visa.

Lowes – Shares in the hardware store trader rose 0.4% after a better than expected quarterly report. Lowe’s exceeded analysts’ expectations for fiscal third quarter results as the company saw a surge in home improvement and online sales. The company also raised its forecast for 2021, forecasting sales of $ 95 billion versus $ 92 billion.

Tesla – Tesla remained wary of the big price moves recently after CEO Elon Musk sold stocks last week. Electric vehicle shares rose 3.3% on Wednesday.

Rivian – Rivian fell 15.1% in its first lost session since the electric vehicle manufacturer went public last Wednesday. The company quickly overtook traditional automakers like ford and GM Market value since the IPO.

Clear group – Electric vehicle stock slipped 5.4% on Wednesday after rising nearly 24% on Tuesday. Morgan Stanley reiterated its underweight position in Lucid, says there are better EV games out there.

Baidu Baidu shares fell 5.5% even after the China-based e-commerce firm beat sales estimates for the last quarter. Baidu said it benefited from stronger ad sales as well as strength in cloud and artificial intelligence products.

Pfizer, BioNTech Stocks of Covid vaccine makers won after the New York Times reported the FDA will approve the Pfizer / BioNTech Covid-19 booster dose for all adults as early as Thursday. BioNTech gained 5.4% while Pfizer gained 2.6%.

year – Roku shares fell 11.3% after the stock downgraded from “neutral” to “sell” at MoffettNathanson. The company cited signs of slowing revenue growth for the streaming company.

TJX – TJX shares rose 5.8% after the clothing and home retailer reported quarterly gains in sales and earnings. Revenues in the same business also increased 14% in fiscal 2020 compared to the same period.

Activision Blizzard – Activision BIizzard shares fell 2.9% after a group of shareholders called for CEO Bobby Kotick to step down Washington Post reported. The letter comes after a Wall Street Journal report that the alleged Kotick had known of allegations of sexual misconduct in the company for years.

– CNBC’s Yun Li and Tanaya Macheel contributed to the coverage

Rivian IPO proves Common Motors is undervalued, says GM CEO

GM Chair and CEO Mary Barra speaks to investors at the GM Tech Center in Warren, Michigan on October 6, 2021.

Photo by Steve Fecht for General Motors

The massive reviews from startups for electric vehicles like Rivian that made his public debut on Wednesday on the Nasdaq at a higher share price and market capitalization than General Motors, shows that the old automaker is “so undervalued,” said GM chief Mary Barra on Wednesday.

Rivian stock started trading at $ 106.75 per share, up about 37% year over year IPO price of $ 78 per share and a market valuation of $ 91 billion. This compares to GM at $ 60 per share and a market capitalization of $ 86.4 billion.

“What it sets out to me is the great opportunity. General Motors is so undervalued, “said Barra on Wednesday, without specifically naming Rivian during the New York Times’ DealBook conference.” I see it as a great opportunity for General Motors to achieve significantly more value. “

When asked if her competitors’ reviews made sense, Barra said she didn’t see them that way.

“I see every competitor as someone I respect. And that we have to get better, have to be faster, have to have vehicles that consumers want, that solve the property equation,” she said. “So that’s how I see it. I would say, if anything, it motivates me to work even harder.”

Rivian is recognized as a pioneer in EV startups that can rival the leading electric vehicle Teslaas GM and other traditional automakers invest tens of billions of dollars in the emerging market segment.

GM was interested in investing in Rivian, but its biggest rival, Ford engine, invest in the EV start-up instead. Ford, which owns about 12% of the start-up, convinced Rivian CEO RJ Scaringe that Ford would be a better fit than GM, as reported recently from the Wall Street Journal.

GM has announced plans to invest $ 35 billion in electric and autonomous vehicles by 2025, since there is Goals exceed Tesla until then in domestic EV sales.

Cramer is skeptical Rivian is the following Tesla and would slightly personal Ford

CNBCs Jim Cramer said Monday that although electric vehicle startup Rivian Automotive has some strong supporters as it prepares to enter the market, it is skeptical that it will be the next Tesla and would prefer shares of Ford engine.

“Even if everything is going well for Rivian, this industry gets a little overcrowded here. When Tesla started there was no one else, ”Cramer continued.Bad money“Now, however,” Rivian has Ford’s F-150 Lightning hot on his heels, along with GM’s electric Hummer and even Tesla’s Cybertruck. “

With Amazon and Ford as great investors, Rivian has valued its stocks between $ 72 and $ 74 for the IPO and is expected to start trading on Wednesday. “Given the company’s plans to offer 135 million shares, we’re talking about a $ 9.85 billion fundraising, making this the sixth or seventh largest public offering in US history,” said Cramer.

Cramer said he wouldn’t be surprised if Rivian stock stood out even at this high valuation because “the people who buy this thing don’t care about valuation.” Rather, investors are betting that the fledgling company can ramp up production and become a major competitor in the growing EV market.

Cramer praised Rivian for the number of orders it received not only for its pickup truck and the planned SUV, but also for its own Big van deal with Amazon. Additionally, the fact that a competitor like Ford is an investor in Rivian is “a great recognition” of Rivian’s potential, he said.

Ultimately, Cramer told the audience that “if you really believe in Rivian, you have my blessings to speculate.” However, he added, “I would prefer to stay on the sidelines and promote my Ford electric vehicle, which is why we own it for the nonprofit foundation.”

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Disclosure: Cramer’s nonprofit trust owns shares in Ford and Amazon.

Rivian, electrical car maker backed by Amazon and Ford, information to go public

Amazon’s new delivery truck

Amazon

Rivian Automotive, a company that develops electric vehicles including commercial vans for Amazon, filed for an IPO on the Nasdaq on Friday. The company aims to trade on the Nasdaq under the ticker symbol “RIVN”.

It is Paperwork shows Rivian posted a net loss of $ 994 million on zero revenues for the first six months of 2021. In 2020, the company’s net loss was $ 1.02 billion.

The company wrote in its submission: “We are a company in the development phase and have not yet generated any significant revenue. Vehicle production and deliveries began in September 2021.”

CEO RJ Scaringe, who holds a Ph.D. from Sloan Automotive Laboratory at the Massachusetts Institute of Technology, founded in 2009 Rivian. The company is based in Irvine, Calif., And employed 6,274 people at the end of June. It operates a vehicle assembly plant in Normal, Illinois.

Amazon and ford everyone owns more than 5% of the company. Peter Krawiec, Amazon’s Senior Vice President, Global Corporate and Business Development, sits on Rivian’s board of directors.

Rivian’s commercial vehicle business will be heavily dependent on Amazon for the foreseeable future. The company said Amazon has some exclusive rights to purchase Rivian electric delivery vehicles for at least four years, and then the right of first refusal thereafter.

Rivian beat Tesla, GM and ford launched with an electric pickup truck, the R1-T, which has already received rave reviews.

– CNBC’s Lora Kolodny contributed to this report.

SEE: Rivian CEO: We’re ready for the electric pickup race