Rivian Plumments, But I am Still in it For the Long Haul

I call them short term hiccups. Or maybe they are better described as "growing pains," but of course that's a bit cliché. I am talking about the plummet this morning of EV automaker stock, Rivian, which only recently began trading publicly in the stock market.

From its IPO price of just around $78 per share the stock is now trading below $30 after the announcement by Ford Motor Company that they would be unloading 8 million of their 102 million shares.

The reason behind the sale is pure speculation since Ford has yet to release its reason for doing so. That being said, I do not find the sale too surprising and on some level perhaps it makes sense for them to do it.

From day one Ford had said that it was investing in the company but had no plans, at the time, to "partner" with the company. Of course Ford has its own line of electric vehicles coming to market with the introduction of the Mustang Mach-E and the F-150 Lightning pickup truck, and is now producing an E-Transit more geared toward commercial fleets.

Both vehicles will do very well and I would suspect so will the E-Transit.

Of course, it is natural for investors to react to Ford's sale. It is unclear whether Ford plans to pull more shares out. Even still, Ford still owns 94 million shares to date. Amazon has not yet made any call to unload shares and honestly a sale by Amazon would concern me more considering that Amazon of course has orders for delivery vehicles and therefore has a stronger vested interest in the EV automaker.

Another investor through JP Morgan Chase has also decided to unload 13 million shares. Again, this action does not concern me since it is not uncommon for certain investors to fund an IPO and then pull out for a little profit once the "holding period" ends.

Despite some discouraging news, such as Rivian lowering its projections on what it is actually able to produce to fill orders, I do not feel that Rivian is in any less of a position than it was when it launched its IPO.

Rivian has been dealing with the same supply chain and other issues every other automaker has been facing EV or traditional.

The bottom line for me is that, as far as my own position in Rivian is concerned, I am still long Rivian and I am willing to suffer out the short term hiccups along the way. I did not invest in Rivian for its stock. I invested in what I believe the company can do, and ultimately that will reflect in a much higher share price than not only today's price, but the IPO price as well.

For me, when it comes to Rivian, nothing has changed.

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