Rivian skids to an all-time low, but the Amazon partnership may provide a backstop

Rivian Automotive (NASDAQ:RIVN) traded at an all-time low on Tuesday, even as the company pushed forward with its growth plans for 2024 and beyond.

The electric vehicle maker released its latest software update this week, which includes charging scores for fast-charging sites to allow drivers to filter out stations with issues, in-app messaging with the service center during appointments, rear display improvements, and navigation feedback.

There was also a positive development on the Amazon (AMZN) front, with news that the e-commerce giant has installed more than 17,000 chargers at about 120 warehouses across the U.S. Amazon (AMZN) is now the largest operator of private electrical vehicle charging infrastructure in the country, according to InsideEVs. Of course, Amazon (AMZN) is an investor in Rivian (RIVN) and has a standing order for 100K EV delivery vans, of which only about 13,500 have been delivered so far. Notably, reports indicate that some of the initial growing pains with servicing the Rivian (RIVN) EVs have been worked out. Amazon (AMZN) holds a position in Rivian (RIVN) of more than 158 million shares, or about 16.6% of the total outstanding shares.

On Wall Street, UBS boosted its rating on Rivian Automotive (RIVN) to Neutral from Sell on what it sees as a more balanced near-term risk-reward profile after the big selloff in shares. “Near-term upside catalysts could be if there is a positive update on R2 orders which would reinforce what Rivian can become, even if that growth is more likely in 2026/27,” noted analyst Joseph Spak. “Near-term downside catalysts could be R1 price cuts and/or softer R1 demand (even though we believe this is better considered at current levels, we see headline risk) as well as higher interest rate concerns,” he added.

Seeking Alpha analyst Li Eason is bullish on Rivian Automotive (RIVN). Eason noted in a recent article that RIVN trades at a much lower price-to-sales multiple than Tesla (TSLA).

Shares of Rivian Automotive (RIVN) gained 3.27% in late morning action on Tuesday to $8.62. The EV stock carved out a new 52-week low of $8.26 earlier in the session.

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