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shares of Rivian Automotive (NASDAQ:RIVN) By the next day, Thursday, it had fallen. wall street journal report Its rival electric vehicle (EV) manufacturer fisker (NYSE:FSR) You may be preparing to file for bankruptcy.
As of 2 p.m. ET, Rivian stock was down about 8.3% from Wednesday’s closing price.
Major rival Fisker is in trouble.
of journal On Wednesday afternoon, the company reported that Fisker had “hired restructuring advisors to assist with a potential bankruptcy filing,” news that sent the troubled electric car maker’s stock price down more than 45% in after-hours trading. .
But that wasn’t surprising at all. Fisker said in its Feb. 29 “preliminary” earnings call that this was likely. don’t have enough cash to survive It said it plans to lay off 15% of its workforce within the next 12 months and hopes to get a lifeline from a major global automaker.
Fisker once hoped to build and sell more than 40,000 Ocean Electric SUVs by 2023. But after a series of early production hiccups, and after demand didn’t seem to materialize, the company built just 10,193 cars and delivered only 4,929 of them. To customers by the end of the year. The company is currently cash-strapped and likely headed for bankruptcy unless that lifeline suddenly materializes.
What does that have to do with Rivian? Rivian is a different company in a completely different situation. But both Rivian and Fisker are members of an organization. EV Startup Cohort It was listed on the stock market at the beginning of this decade, and each investor expected it to become the next stock. tesla.
Most of the other EV startups from that time are now bankrupt as well.
Rivian is doing well, but EV stocks tend to move in tandem.
Of course, Rivian has its own challenges. But the company delivered more than 50,000 vehicles last year, had $10.4 billion in cash and available financing at the end of 2023, and had more than 68,000 pre-orders. next new model It comes a day after it was revealed, and importantly, the company was able to raise funding twice last year. I’m sure I can do it again If the need arises.
But with Fisker seemingly on the verge of collapse, it’s not all that surprising that Rivian stock is taking a hit today.
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John Roseveer has no position in any stocks mentioned. The Motley Fool has a position in and recommends Tesla. The Motley Fool has a disclosure policy.
The article Why Rivian Stock Is Being Broken Today was originally published by The Motley Fool
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