Rivian stock falls after Amazon announces new partnership with Stellantis

Posted on January 5, 2022
At the close, Rivian (RIVN) dropped over $11 a share on Wednesday. (Photo courtesy: WJBC/File)

By Blake Haas

NORMAL – Common Rivian Automotive (RIVN) stock dropped on Wednesday after reports of a partnership between Amazon and Stellantis, the automaker formerly known as Fiat Chrysler.

Amazon, which holds a 20% stake in Rivian, worth about $3.8 billion, said they would partnership with Stellantis to provide in-car dashboard software and cloud services.

Rivian (RIVN) closed down 11.22% or $11.28 per share of common stock to $90.01 per share.

“They have pretty close ties with Ford (F), and so this announcement.. it just shows that there is going to continue to be more players entering this field,” said Chris Ruedi, a Financial Advisor with Savant Wealth Management. “(There could be) more potential partnerships with what we may think of more mainstream car producers currently.”

General Motors (GM) announced a new electric Chevrolet Silverado priced at $39,900 to $105,000 for a luxury model on the heels of the sharp decline.

“Another maybe source of competition could have played a role in seeing some of the declines today,” Ruedi told WJBC’s Todd Wineburner. “Anybody who’s watched Rivian (RIVN) since it’s gone public knows it tends to move up and down pretty frequently. And that’s not uncommon for stocks of that nature or companies in their phase.”

The news of a partnership between Amazon and Stellantis comes two months after Rivian debuted on the Nasdaq exchange at $79 a share.

Blake Haas can be reached at [email protected].

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