What happened
Electric vehicle manufacturer Rivian Automotive (RIVN -1.59%) is scaling back its ambitions as we enter what could be a difficult patch for automakers. Investors are apparently getting worried: They sent Rivian shares down by 42.5% in December, according to data provided by S&P Global Market Intelligence.
So what
Rivian joined the public markets in November 2021 to great fanfare, with its share price surging by as much as 53% following its initial public offering and valuing the electric vehicle manufacturer to a market cap of more than $100 billion. The expectations baked into a valuation like that, however, can be hard to meet, and the company has since then faced several challenges that tempered investors’ enthusiasm for the stock.
Manufacturing vehicles at scale is difficult and costly. Rivian last year raised the prices on its well-received electric pickup, and in…
