Rivian could lose its Nasdaq spot after a 90% sell-off, says JPMorgan

(Bloomberg) — Shares of Rivian Automotive Inc., the money-losing electric vehicle startup, could be dropped from the Nasdaq 100 index as early as this month after plunging more than 90% from their all-time high, according to JP Morgan Securities.

Bloomberg’s Most Read

The index generally removes smaller members of the Nasdaq 100 if the company is weighted within 0.1% of the gauge for two consecutive months, JPMorgan analyst Min Moon wrote in a note Thursday. As Rivian was below 0.1% on April 28 and May 31, Moon expects the automaker to be dropped from the index on the third Friday of June.

ON Semiconductor is ranked as the top company eligible to replace the electric vehicle maker, Moon added.

A delisting would deal another blow to a stock that has been battered since its IPO in November 2021.

After briefly riding the frenzy of all things electric cars, Rivian’s shares began to tumble. Investors soured on risky growth names, correctly anticipating that the Federal Reserve would hike rates to stop inflation, slowing the economy and making sales of an expensive electric pickup less likely.

Representatives for Rivian and Nasdaq declined to comment Thursday.

Rivian shares fell 4.8% to $14.02 on Thursday in New York, but then pared most of the losses to trade down 0.1% at 1:54 p.m. of Group Inc. Meanwhile, shares of industry leader Tesla Inc. are up 68% over the same period.

(Updates stock movement in seventh paragraph, company response, Nasdaq in sixth.)

Bloomberg Businessweek’s Most Read

©2023 Bloomberg LP

Leave a Comment