What happened
Rivian Automotive (RIVN -1.22%) shares went on a bit of a roller coaster ride Monday morning. After spiking as much as 4.9% to start the day, the stock reversed course, dropping as much as 5.5% below Friday's closing share price. As of 2:02 p.m. ET, the stock remained down 3.7% on the day.
So what
Rivian's stock was the talk of earnings news late last week, but not in the traditional sense. It wasn't Rivian's financial update that was released, but those of early investors Amazon and Ford Motor Company. Both companies reported significant gains in the fourth quarter of 2021 thanks to their stakes in Rivian. But late Friday, a popular investor talked down Rivian stock, saying he didn't think it would be the next Tesla.
Rivian R1T pickup being manufactured at the company's Illinois factory. Image source: Rivian Automotive.
Now what
CNBC's Jim Cramer said on his Mad Money program Friday evening that he doesn't agree that Rivian will become the next Tesla, and he wouldn't buy Rivian stock here. He added that he thinks "it's going to be a very unsexy truck maker."
Those comments came after Amazon and Ford recorded large gains in the fourth quarter from their holdings in Rivian late last week. Amazon revealed a pre-tax gain of $11.8 billion from the valuation of Rivian's stock after its initial public offering last fall, while Ford recorded a fourth-quarter gain of $8.2 billion.
But Rivian shares have plunged 43% since the start of 2022, and those earnings reports were just another reminder of that drop. And the companies could record a reversal of those previous gains after the first quarter, depending on where Rivian is trading at the end of the March 2022.
