Rivian stocks plunge more than 15%, slowing rally after going public
Rivian Signage on Nasdaq on its IPO day, November 10, 2011 in New York.
Electric vehicle maker Rivian stocks ended a week-long rally on Wednesday as investors pulled back from a monster run as speculation about the name subsided after it outperformed Ford and GM in market value.
The company’s stock fell more than 15% on Wednesday afternoon.
Rivian went public on one of the biggest IPOs of the year last Wednesday. The company opened at $ 106.75 per share on November 10, its first day of trading. It closed at $ 172.01 on Tuesday.
Rivian quickly outperformed traditional automakers like Ford ($ 79.09 billion as of Tuesday) and General Motors ($ 90.9 billion). As of Tuesday’s end, Rivian had a market cap of $ 146.7 billion. The company’s value is still well behind rival Tesla ($ 1.06 trillion).
The company is attracting great interest from investors as consumer demand for electric vehicles continues to grow. However, Rivian still has to demonstrate a sustainable business model. For the third quarter, the company also expects sales of no more than $ 1 million.
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