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Amazon takes $7.6 billion loss on Rivian stake from Q1 stock plunge

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R.J. Scaringe (35-year-old CEO at Rivian) introduces the company’s R1T all -electric pickup and R1S all -electric SUV, Los Angeles Auto Show. Los Angeles, California. November 27, 2018.

Reuters| Reuters

AmazonElectric vehicle maker RivianAs part of the plan to be green in 2019, It was dominated by red during the first quarter.

Amazon reported a loss of $7.6 billion on Rivian in its fourth quarter earnings. Amazon’s shares plunged more than half in 2022 after the manufacturer of electric vehicles reported a loss of $7.6 billion. stock market debutand its market value increased dramatically.

Rivian has ambitions big for Amazon. Rivian signed an agreement to manufacture 100,000 delivery cars by 2030. But current market conditions remain challenging. Rivian said last monthThe company anticipates producing just 25,000 SUVs and trucks this year. This is half the amount that was forecasted to investors as part of last year’s IPO roadshow.

Like most manufacturers, Rivian is battling through supply chain constraints and internal production snags. Rivian, however, was valued at $86 Billion after it IPO. This makes the stock vulnerable to a large pullback.

Rivian’s 2022 drop

CNBC

In the first quarter of 2019, the Nasdaq Composite fell 9.1%, the lowest level since 2020’s first quarter. This was the worst quarter for the Nasdaq Composite since then, at the beginning of the Covid-19 pandemic. As investors switched into safer assets during periods of rising inflation, and higher interest rates the riskiest bets suffered the most.

Rivian stock has dropped 36% in the first quarter. Now, it’s more than 80 percent off the November peak.

On Wednesday, FordIt was taken a $5.4 billion lossAmazon holds a 12% share in Rivian. According to FactSet Amazon holds a approximately 18% share of Rivian, with a combined investment of $1.3 billion.

Amazon’s markeddown is especially large but that doesn’t mean it’s the only tech company taking a hit on its equity investments.

This week was earlier. Alphabet recordedA $1.07 Billion loss in its investments due to market volatility Alphabet’s investment units have supported companies such as UiPathFreshworksLyft and DuolingoThey have been all caught up in market swoon.

Microsoft said this week that its first–quarter profit took a $174 million hit in part due to “mark-to-market losses on our equity portfolio.” Last week SnapAccording to the company, it had an unrealized $92 million loss from investments that were made in H2 2021.

WATCH: Rivian’s CEO confident the company can produce 25,000 vehicles this year

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