Rivian (RIVN) and other electric vehicle (EV) stocks are getting hammered amid the recent volatility. Specifically, shares of companies with low revenue or are not yet profitable are losing the most.
Since the start of the year, Rivian’s stock is down roughly 40%. The EV startup’s valuation ballooned to a high of $153 billion on November 16 of last year. That market cap has shrunk to roughly $53 billion.
Other electric vehicle related companies which have lost significant value include Chargepoint (CHPT). The charging-station startup is down roughly 30% year to date. Battery maker Quantumscape (QS) and EV startup Workhorse (WKHS) are also down about 30% since the beginning of the year.
“Its part of the de-risking process,” Matt Maley, managing director at Miller Tabak, told Yahoo Finance.
Investors “want companies that are making money. If they’re not making money right now, it’s just too risky,” he said.
The high end electric vehicle maker Lucid (LCID) has fared better among the non-yet-profitable EV players, down 6% year-to-date, though 44% off its intraday high in 2021.
A slew of EV related companies went public during the pandemic, including Rivian, Lucid, Chargepoint and Quantumscape. They benefited greatly from the heyday period of money flowing into the promising future of electric vehicles.
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By comparison, Tesla (TSLA) which entered the S&P 500 during the pandemic after four consecutive quarters of profitability, is down roughly 13% year to date. Tesla had a deliveries for the fourth quarter of last year, smashing analyst expectations. The company will report earnings this week.
Among the companies that have faired the best since the start of the year, the legacy automakers with plans for significant EV investments. Toyota Motor (TM) is green for the year, up 5%. Since start of 2022, Volkwagon (VOW3.DE) is flat . Ford and GM are down about 5% and 10% respectively year-to-date.
Ines is a markets reporter covering stocks from the floor of the New York Stock Exchange. Follow her on Twitter at @ines_ferre