I think you are getting your data mixed up. Rivian IPOed at $78, it hit $171 within the first week. Since then it has been on a pretty steady decline down to the $55 - 65$ range which it has been within most of this year so far. This price increase had nothing to do with their stock performance. Likely it is more related to the challenges they have faced scaling up production as they have been burning through cash faster than expected due to the challenges they have faced. Price increases on raw materials of course are part of that challenge, but certainly not the whole story. It could also be related to the fact that Amazon has signed a contract with a competitor for delivery vans, Amazon seems to be hedging their bets around Rivian being able to deliver all the EV delivery vans they have promised because of these scaling issues.
Honestly this price increase while it may be needed to get the cash flow they need to survive, it could also be the reason they don't. Everyone I know who has a Rivian order has canceled theirs. Seen tons of people on twitter posting their cancelation notices as well. Rivian is being faced with all the "big boys" actually producing EVs now and in most cases undercutting their price. Which the larger companies can afford because they make money through volume not through single models.
I have not gone back and Googled it and the reason is I understand the narrative and how the exact stock curve happened by the numbers is irrelevant as I'm not an investor I'm a buyer of the product. The initial IPO was reasonably exceeding expectations, it shot up in value, it's gone down and this is a clear response. Those are the only facts that matter to the conversation we're having as far as I'm concerned. I definitely understand how my post read after AZBill's response and was just trying to clear that up using the numbers he presented. Apologies again for muddying the waters here.
Just trying to keep it focused to how they can't justify a $16,000 price increase for any reason other than "hey look at that demand, people will pay it" while having the stock price in their minds while they do it.
I've had this argument many times and I don't want to address the "it's a free market" thing because it gets rather philosophical but when an industry finds a mechanism they can all abuse, they do. This is why we have to have monopoly and price fixing laws. With the batting percentage of satisfied reservation holders where it is in recent years, this has very clearly become a mechanism.
I'll just say there's a reason in every state there's uniform forms and bills of sales, etc., we all get the same yellow slip bill of sale or whatever and it's because this is an industry adept at doing this crap and everything is spelled out by regulation in part to protect the consumer.
We've bypassed all that at a national level with this reservation system and "I accept" without any options to "not accept" and proceed with actually buying a car in the EV space. That's very clearly a ***** in the armor of the free market emerging from a place that's known to have ****** in their armor as a rule.
We've seen single digit % increases in the kinds of raw materials Rivian traffics in on a product they presumably already had high margins built-in. I repeat, there's no accounting for a $16,000 price increase other than, "hey look, people will pay it" and "it's a free market, deal with it" clearly is not the answer. Single digit increases can be steep and matter but this is different, again on a luxury car not a budget car where margins are higher and volumes lower by definition.
Mach-E, ID.4, Ioniq 5, EV6, F150 Lightning, R1S, all cars I would have purchased if they would have honored what they were saying at the time of placing a reservation. It just so happened we cycled out two cars at roughly the same time right as the Pandemic was peaking so I've been taken for quite a **** ride (again, and I'm going through the Bolt recall!). It's just been a lot. Like a lot. A lot of waiting a lot of wasted time a lot of money lent out, a lot of nonsense in ownership of the Bolt.
I find it highly ironic that getting back into a Bolt EV or EUV and not being in this market is going to be a relief since it was the source of endless agita to begin with. I'll have a Bolt and a Kona, two recalled cars that actually now represent the least stress.