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Shares of Rivian, an electric-vehicle company backed by Amazon, fell 3% to a new 52-week low on Thursday, a day after automaker Stellantis announced that Amazon would provide its cloud services and in-car dashboard software.
Rivian stock is now down 15.6% for the week, after falling 11% during Wednesday’s trading session, and is about 51.3% off its high, on Nov. 16.
There are other factors affecting the share price, however. Investors are rotating out of tech stocks that have distant profit outlooks. EV stocks are among a group of companies with high valuations and uncertain future profitability, making them riskier bets as interest rates rise. Investors are dumping those onetime darlings and moving into more stable companies with growing profits.
Stellantis, formerly known as Fiat Chrysler, also announced that Amazon would be the first commercial customer of its Ram ProMaster battery-electric vehicle.
Rivian debuted on the Nasdaq just two months ago. It had named Amazon its preferred cloud provider and is contracted to make 100,000 vehicles for the company by 2030.
R.J. Scaringe, Rivian’s CEO, introduces the world to his company’s R1T all-electric pickup and all-electric R1S SUV at the Los Angeles Auto Show in Los Angeles, California, November 27, 2018.
Mike Blake | Reuters
An Amazon spokesperson reiterated the company’s support for Rivian in a statement to CNBC on Wednesday.
« We always knew that our ambitious sustainability goals in our last mile operations would require multiple electric delivery van providers, » the spokesperson said in a statement. « We continue to be excited about our relationship with Rivian, and this doesn’t change anything about our investment, collaboration, or order size and timing. »
« This is good news for the industry, for Rivian and for Amazon, » a Rivian spokesperson said in a statement first shared on Wednesday. « Large fleets focused on electrification and carbon neutrality represent a win for the mission of both companies. Amazon’s scale is globally unprecedented, and we expect them to purchase vehicles from many providers — our own partnership with them is intact, thriving, and growing. »
— CNBC’s Jordan Novet contributed to this report.
WATCH: Why EV investors can’t ignore Rivian or Apple, according to analysts
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