Rivian shares were down 17% on Monday
The company is still worth $96 billion, which is 20% more than Ford
Ford shares where up slightly on Monday
This news had quite an impact in the financial sector, since Rivian’s shares dropped in price by 17% on Monday.
The reduction in price had already started in the last trading hours of Friday, when Rivian lost 3 percent, but the confirmation by Rivian that indeed, it wouldn’t collaborate with Ford anymore sent its valuation down further.
The partnership was ended by Ford because the company thinks it is able to be competitive in the EV market without using the technology designed by Rivian.
This has the effect of preventing Rivian from benefitting from Ford’s experience and weight in the automotive industry, since the start up is only 12 years old, which is extremely young in this industry, where all major players have many decades of experience in car building, or a solid partnership with a more experienced company.
Investors saw this in a bad light for Rivian, hence the drop in value. Interstingly, they seem to trust Ford’s confidence in its ability to continue alone, since the shares of the blue oval were up slightly on Monday.
Despite this drop, Rivian is still worth $96 billion on the market, which is about 20% more than Ford and enough to remain the third most valuable automaker, behind Tesla and Toyota.
The idea that Ford can thrive on its own is not pure optimism however, since it plans to increase its EV production to 600,000 units a year, which would make it the second largest EV maker in the world.