Rivian Automotive Inc. has experienced a significant decline in its stock following the release of its recent earnings report, marking the company’s worst week since going public. This downturn has had a notable impact on one of Rivian’s top investors, Amazon.
As the largest shareholder with 158.4 million shares (16.6% of outstanding shares), Amazon.com Inc.’s investment in Rivian took a hit last week as the stock dropped by 55.8%, resulting in a loss of $986.6 million for the e-commerce giant and bringing down their total investment value by $2.05 billion year to date.
In November 2023, Rivian ended its exclusive partnership with Amazon for electric last-mile delivery vans and recently announced plans to establish a permanent location at 1001 Bellevue Square after operating from temporary pop-up locations in Seattle . Additionally, layoffs are expected as part of Rivian’s plan to reduce salaried staff by 10%.
This news comes as Connect CRE reports that Amazon has lost nearly $1 billion on their investment in Rivian – an unfortunate turn for both companies involved.
