Ford F-150 Lightning and Chevy Silverado EV threaten Rivian, says Wall St.

Outside of the automakers inherited from Tesla and the Detroit Big Three, startup EV Rivian is perhaps the most promising automaker in the United States. Backed largely by cash from top investors including Ford and Amazon, and a massive deal with Amazon’s Prime delivery service, Rivian just started trading publicly last November, with a Initial public offering of $ 78 which quickly faded on the horizon as its stock price jumped to nearly $ 180 within days.

Since then, the commercial frenzy has died down and a new threat looms: these big three automakers. Last Thursday, just one day after GM unveiled its upcoming Chevrolet Silverado EV electric pickup truck, and two days after Ford announced it would once again double production of F-150 Lightning, Rivian’s stock value fell to an all-time low. . Prices briefly dipped below the electric vehicle maker’s $ 78 IPO for the first time, before rebounding slightly to close above $ 83 as of this writing. Yet the strength of offerings from traditional automakers is clearly having an effect.

The 2022 Ford F-150 Lightning. Image by Ford.

The great competition of the three spells

In a sense, the flickering value of Rivian’s action is a cliché of the old David-v-Goliath story. Legacy automakers like Ford and General Motors have well-established nameplates to draw on, along with vast engineering and production resources, over a century of experience, and plenty of capital to solve nearly any problem. problems. It’s hard for a startup to compete, especially in such a complex, regulated, and manufacturing-intensive business, even though that startup is particularly well funded.

2024 Chevrolet SIlverado EV RST Specifications Info Price Reservation Availability
The first edition of the 2024 Chevrolet Silverado EV RST. Image by Chevrolet.

And it’s not just the Ford F-150 Lightning and Chevrolet Silverado EV that are undermining Wall Street’s confidence in Rivian, whose R1T electric pickup and R1S SUV have just started customer deliveries. On the same day the Silverado EV was revealed, Amazon and Stellantis announced a partnership that will see Stellantis vehicles adopt certain Amazon software in the future, as well as Amazon becoming the first commercial customer for the Ram ProMaster 2023 electric delivery van. To our knowledge, this does not affect Amazon’s existing order of 100,000 electric delivery vans built by Rivian through 2030, but it does suggest that starting the electric vehicle is less critical for Amazon’s neutral plans by carbon than before.

This was essentially the view of Deutsche Bank analyst Emmanuel Rosner, according to a Reuters report. Reuters also quoted Guidehouse Insights analyst Sam Abuelsamid, who explained: “Amazon has invested a lot of money in Rivian… This has been a key factor for a lot of people to demonstrate that it is a viable business that has a product that maybe [sic] relatively unique on the market.

And nothing is preventing Ford, with its all-electric E-Transit delivery van arriving this year, or GM, whose electric utility vehicle company BrightDrop just announced deals with Walmart and FedEx, from further encroaching on Rivian space.

Robert M. Larson