Rivian Loses Spot on Nasdaq 100 as Shares Plummet Nearly 90%Rivian, the electric vehicle (EV) startup that hit the stock exchange in 2021 with shares commanding a hefty $129.95, has seen its shares plummet nearly 90% since then. This includes a 20% drop this year, with shares currently trading at just $14.74. The company has had a difficult time since its IPO, and things have only gotten worse this month. Rivian’s poor performance has resulted in it losing its spot on the prestigious Nasdaq 100. The index lists the 100 biggest non-financial firms on the New York-based Nasdaq stock exchange and includes heavy hitters like Apple and Microsoft.Why Rivian Lost Its Spot on Nasdaq 100Rivian’s stock was weighted as less than 0.1% of the index in April and May, resulting in its removal from the Nasdaq 100. The index normally removes its smallest members after two consecutive months of being that low, and just as JPMorgan Chase analyst Min Moon predicted last month, Rivian is out. Moon also correctly predicted Rivian’s replacement in the Nasdaq 100. The incoming company is On Semiconductor, which is located in Arizona and is in the business of supplying chips to automakers building electric cars.The Plight of EV StartupsOther EV startups like Lucid, Nikola, and Lordstown have all had a tough time lately, suffering falling share prices. Nikola received a delisting notice from Nasdaq in May because its shares had been trading below $1 for 30 consecutive days, and Lordstown had to perform a reverse stock split to save its shares from dipping below $1 and the company suffering the same fate. What all of these firms have in common is that their valuations were way out of sync with the number of cars they had produced, or were going to produce any time soon, and made legacy automakers’ stock look dirt cheap.The Original EV Startup: TeslaThe original EV startup, Tesla, has proved itself a viable force in the auto industry and has bounced back after its stock fell to a two-year low in January of this year. Tesla’s success can be attributed to its ability to produce and deliver cars at scale, something that many of the newer EV startups have struggled with. Tesla has also diversified its offerings beyond just EVs, with solar panels, batteries, and energy storage solutions. This diversification has helped the company weather the storm of the pandemic and supply chain disruptions.ConclusionThe plight of Rivian and other EV startups serves as a cautionary tale for investors looking to get in on the ground floor of the next big thing. While these companies may have promising technology and innovative ideas, they still need to prove themselves in the market by producing and delivering products at scale. Tesla has shown that it is possible to do so, but it takes time, resources, and a solid business plan. As for Rivian, only time will tell if it can bounce back from its recent setbacks and establish itself as a major player in the EV market.

Heading 1: Rivian’s Struggles in the Stock Market

Rivian’s journey in the stock market has been a rollercoaster ride. The electric vehicle (EV) startup made its debut in the stock exchange in 2021, and its shares were priced at a whopping $129.95 each. However, the company’s shares have plummeted by almost 90 percent since then, including a 20 percent drop this year, and are currently trading at just $14.74.

Heading 2: Rivian Loses Spot on Nasdaq 100

Rivian’s poor performance has resulted in it losing its spot on the prestigious Nasdaq 100. The index lists the 100 biggest non-financial firms on the New York-based Nasdaq stock exchange, including heavy hitters like Apple and Microsoft. Rivian is being removed because its stock was weighted as less than 0.1 percent of the index in April and May. The Nasdaq 100 normally removes its smallest members after two consecutive months of being that low, and just as JPMorgan Chase analyst Min Moon predicted last month, Rivian is out.

Heading 3: On Semiconductor Replaces Rivian in Nasdaq 100

Moon also correctly predicted Rivian’s replacement in the Nasdaq 100. The incoming company is On Semiconductor, which is located in Arizona and is in the business of supplying chips to automakers building electric cars. This is a cruel irony for Rivian, an EV startup that was expected to disrupt the traditional automakers’ market dominance but has now been replaced by a company that supplies chips to those same automakers.

Heading 4: Struggles of Other EV Startups

Rivian is not the only EV startup that has struggled in the stock market recently. Lucid, Nikola, and Lordstown have all suffered falling share prices. Nikola received a delisting notice from Nasdaq in May because its shares had been trading below $1 for 30 consecutive days, and Lordstown had to perform a reverse stock split to save its shares from dipping below $1 and the company suffering the same fate.

Heading 5: Valuations Out of Sync with Production

What all of these firms have in common is that their valuations were way out of sync with the number of cars they had produced or were going to produce any time soon. This made legacy automakers’ stock look dirt cheap. However, the original EV startup, Tesla, which has proved itself a viable force in the auto industry, has bounced back after its stock fell to a two-year low in January of this year.

Heading 6: Lessons Learned

The struggles of Rivian and other EV startups in the stock market highlight the importance of balancing hype with reality. While EVs are undoubtedly the future of the auto industry, it takes more than just hype and promises to succeed in the stock market. Investors are looking for tangible results, such as production numbers and revenue growth, to justify their investments.

Heading 7: Conclusion

In conclusion, Rivian’s struggles in the stock market and subsequent removal from the Nasdaq 100 index serve as a cautionary tale for other EV startups. While the potential for disruption is high, it takes more than just hype to succeed in the stock market. Investors are looking for tangible results, and companies need to balance their promises with reality to succeed.

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