Nov 22, 2021 (Baystreet.ca via COMTEX) -- When Rivian /zigman2/quotes/230726939/composite RIVN -0.45% listed its shares on the public market, the company took advantage of the bullish markets. The stock market speculators briefly rallied the stock to almost $180.
That did not last long.
The next day, Rivian shares gave up half the gain. After a $103 billion market capitalization, the electric vehicle stock may have marked a top. The company has only Amazon /zigman2/quotes/210331248/composite AMZN +0.57% and Ford /zigman2/quotes/208911460/composite F +0.68% to count on as its customers. Should it target the consumer market, it faces very tough competition ahead.
One less Customer
After the market closed, Ford and Rivian parted ways. The pair will no longer jointly develop a Ford EV. Ford does not need Rivian. It has an upper hand with the Ford Bronco (gas-powered), the F-150 hybrid and EV, and budget trucks to target the budget range. Ford could take advantage of the market's euphoria by selling RIVN stock at the earliest opportunity. The cash it raises from the sale could fund Ford's EV expenses. Ford could build more manufacturing plants, buy battery technology, and secure the supply chain with the extra cash.
Rivian is vulnerable to relying on just one customer: Amazon.
Reports that Rivian EV trucks have a lower range than Amazon expected are troubling news. Rivian cannot afford to lose another major customer. Before Rivian shares fall further, investors should be wary of buying the stock at current prices.
Is there a problem with this press release? Contact the source provider Comtex at email@example.com. You can also contact MarketWatch Customer Service via our Customer Center.