LA Electric Automakers Like Rivian, Fisker Get Pummeled Amid Stock Market Selloff

Harri Weber

Harri is dot.LA's senior finance reporter. She previously worked for Gizmodo, Fast Company, VentureBeat and Flipboard. Find her on Twitter and send tips on L.A. startups and venture capital to harrison@dot.la.

Rivian
Image courtesy of Rivian

With the stock market in the midst of a major correction, some of the companies that have made Southern California a hotbed of electric vehicle manufacturing have taken a hit on Wall Street.


The likes of Rivian, Fisker, Faraday Future and Xos have all seen their shares decline sharply from their highs of last year. After its splashy IPO last fall saw Rivian briefly become the world’s third-most valuable automaker, the Irvine-based electric truck manufacturer’s stock dipped below $60 per share for the first time today. Rivian shares closed Monday’s trading just shy of $64, and have now fallen nearly 63% from their November closing high of over $172.

Other EV makers who call Los Angeles home are also having a tough time on the market. Manhattan Beach-based Fisker’s stock closed Monday’s trading at under $12 per share, down 50% from nearly $24 per share in November; Gardena-based Faraday Future ended the day at under $5 per share, down nearly 73% since it broke $16 per share in June; and Atwater Village-based Xos closed just above $2 per share, down more than 71% since its August IPO.

Similarly, Canoo—which announced in November that it would relocate its headquarters from L.A. to Arkansas—has seen its shares slip more than 56% from their November high, while Phoenix-based Nikola, which has been beleaguered by securities fraud charges, has lost nearly 52% of its value since the fall.

Tesla’s stock, meanwhile, has fared somewhat better—only losing about 24% since its all-time high of more than $1,200 per share in November. The Elon Musk-led automaker continues to lead the field among EV firms and is expected to post a fourth-quarter profit north of $2 billion later this week.

Of course, these declines coincide with a broader, market-wide selloff that has seen the S&P 500 lose more than 7% of its value since the start of this year. But tech companies have borne the brunt of the correction—the Nasdaq Composite is down more than 11% on the year—while emerging EV companies, in particular, have been hit by chip shortages and scrutinized for a dearth of profits.

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Minnie Ingersoll
Minnie Ingersoll is a partner at TenOneTen and host of the LA Venture podcast. Prior to TenOneTen, Minnie was the COO and co-founder of $100M+ Shift.com, an online marketplace for used cars. Minnie started her career as an early product manager at Google. Minnie studied Computer Science at Stanford and has an MBA from HBS. She recently moved back to L.A. after 20+ years in the Bay Area and is excited to be a part of the growing tech ecosystem of Southern California. In her space time, Minnie surfs baby waves and raises baby people.
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Courtesy of Amanda Groves.

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David Shultz

David Shultz is a freelance writer who lives in Santa Barbara, California. His writing has appeared in The Atlantic, Outside and Nautilus, among other publications.

Rivian Stock Roller Coaster Continues as Amazon Van Delivery Faces Delays
Courtesy of Rivian.

Rivian’s stock lost 7% yesterday on the back of news that the company could face delays in fulfilling Amazon’s order for a fleet of electric delivery vans due to legal issues with a supplier. The electric vehicle maker is suing Commercial Vehicle Group (CVG) over a pricing dispute related to the seats that the supplier promised, according to the Wall Street Journal.

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