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Shares of Rivian Automotive (RIVN) have lost 93% of their value since their initial public offering in 2021. The company’s market capitalization has fallen to less than $12 billion today from $150 billion realized after its public trading debut in 2021. Rivian Automotive is struggling to compete in a crowded electric vehicle (EV) market.
Rivian Automotive has struggled, along with other EV startups, as it lacks the advantages of the cost savings that come from large-scale vehicle production. Also, raising capital to fund that larger-scale vehicle production has become increasingly difficult as the Federal Reserve continues to raise interest ranks and U.S. banks tighten their lending standards in the aftermath of the failures of Silicon Valley Bank, Signature Bank, and First Republic Bank. In addition, Tesla’s (TSLA) price cuts are pressuring other EV makers to do the same as they compete for market share.
