Rivian's stock clocks a record low as electric-truck price competition heats up

By Emily Bary

Ford is 'adjusting' prices of its F-150 Lightning EVs, and that could put pressure on Rivian

Rivian Automotive Inc. shares closed at a fresh record low on Thursday, with the competitive landscape for electric trucks set to get even hotter after Ford Motor Co. said it will cut prices.

"We are adjusting pricing for [model-year 2024] models as we continue to adapt to the market to achieve the optimal mix of sales growth and customer value," a Ford (F) spokesperson told MarketWatch on Thursday regarding its F-150 Lightning electric pickups.

Wall Street appears to be concerned that lower-priced electric trucks from Ford could put more competitive pressure on Rivian's business. Shares of Rivian (RIVN) dropped 6.8% in Thursday's session to finish at $9.57, a new record low and the stock's first since February. The shares have lost about 10% over the past two sessions.

See also: Why is Ford deepening its hybrid push? It comes down to one word.

With the changes, Ford's XLT variant would go down in price by $2,000 to $62,995, Ford's spokesperson said. The Flash trim would see its price drop $5,500 to $67,995, while the Lariat would see its price decrease to $76,995, a drop of roughly 3%. The company isn't changing the prices of its PRO and Platinum lineups.

CarsDirect reported on the planned price cuts earlier Tuesday.

Rivian's R1T vehicle starts at $69,900, while its R1S begins at $74,900, the company says on its website.

Read: Rivian's stock is a risky bet. Why this analyst now says it's one worth making.

The offerings from Rivian aren't perfectly comparable to Ford's electric pickups in part because Rivian's trucks are billed more as adventure-oriented luxury pickups and SUVs, with features geared toward outdoor activities.

But as EV makers contend with cooling demand and growing competition, the specter of more aggressive pricing from another electric-truck maker could be making Rivian investors a bit jittery.

Thursday wasn't a pretty trading day for EV stocks in general. Lucid Group Inc. shares (LCID) also closed at a fresh low of $2.50, down 5.7%. And Nikola Corp. (NKLA) shares tumbled 27% after the company floated a reverse-split proposal to shareholders in a proxy filing.

-Emily Bary

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04-11-24 1813ET

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