Rivian (RIVN.US) stock plunges more than 12.0% following Friday’s news that Ford (F.US) and Rivian have dropped plans to jointly develop an electric vehicle. Ford was one of Rivian's early major investors in 2019 and currently holds a 12% stake in the startup. Ford invested a total of $1.2 billion in Rivian, however current holding is worth over $12 billion following Rivian's recent IPO. "Right now, we have growing confidence in our ability to win in the electric space," Ford CEO Jim Farley told Automotive News. "We want to invest in Rivian — we love the future as a company — but at this point we're going to develop our own vehicles." he also said. Farley believes that the company's EV position now is far stronger than when it first invested in Rivian, having recently announced huge investments in research and development facilities.
Also reports of subpar battery performance of Rivians electric delivery vans weighed on sentiment. Recent Amazon test of a Rivian electric van showed that the battery's performance is below the EV startup's claims.
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Rivian (RIVN.US) stock broke below the lower limit of the ascending channel during Friday's session. Today, one can see that the downward move is being continued. Price bounced off the upper limit of the descending channel and broke below local support at $121.00. If current sentiment prevails downward move may accelerate towards $90.00. Source: xStation5
