let's take a look at one of our stocks of
the year and we are focusing on Rivian today as
the E. V truck maker has been ravaged by
a range of setbacks in 2022 the company went public
in november of 2021 so just a little over a
year ago with this historic valuation of more than$80
billion was the biggest I. P. O.
Since facebook debuted in 2012. But since then supply
chain and manufacturing issues that caused the company stock to
creator and Rivian notoriously trying to raise prices of its
vehicles in March, extending even to pre existing orders
already committed to the original price only to later reversed
course and apologized. So talk about a volatile stock
market. This was a volatile pricing structure for consumers
and since its I. P. O. The
company has fallen from the top of the E.
V. Startup mountain, hitting every rock on the
way down. Unfortunately, We take a look at
the stock year to David's down 79%. As the
company has lost nearly$75 billion November of 2021.
Well, the company's supply chain issues have had ripple
effects throughout the economy and Rivian failing to secure the
necessary materials to make the all important batteries for its
vehicles. So that combined with the semiconductor shortage causing
it to slash production estimates to just 25,000 for all
of 2022. Now, as of October however,
Rivian had produced less than 15,000 vehicles a year and
amazon and ford major backers of Rivian from the jump
, both companies suffering billions of dollars in losses this
year, pointing the finger at their investments in Rivian
. Now, after a disastrous first quarter for four
, that legacy automaker offloading much of its investment in
Rivian, selling about seven million shares for just under
$27 each. That was a total of roughly 188
million. So a lot of money there, a
lot of cheddar if you will, but amazon meanwhile
, maintaining its confidence in Rivian and the e commerce
giant's order of 100,000 0 emission electric delivery vans is
something that has helped keep Rivian afloat during these tough
times, amazon already rolling out thousands of the vans
in more than 100 cities across the US delivering more
than five million packages in the process. And the
good news for Rivian is that it has 100 and
14,000 orders for its vehicles. The bad news is
that it's unclear when those vehicles will be delivered.
So it's burning through cash on production, winding its
losses in the third quarter of this year to 1.7
billion from 1.2 billion in the same time last year
. But despite the bleak 2020 too many analysts believe
in Rivian is business plan in the long run.
So another consolation for this company is that it's dr
lucid, Is that a rough year to tesla steering
into one crisis after another. And so we'll see
if Rivian can turn over a new leaf in 2023 --> .