- Shares of Rivian and Lucid Motors continued their fall on Thursday as investors turned profitable.
- Rivian was down more than 12% on Thursday while Lucid dropped nearly 11%.
- Electric vehicle makers have achieved intent as investors look for the next Tesla.
Shares of Rivian and Lucid Motors continued to tumble on Thursday as investors take profits and Rivian’s monster pulls back from some of the EV hype inspired by the market debut.
Rivian was down more than 12% while Lucid was down about 11% as of mid-morning.
Electric vehicle makers have achieved intent as investors look for the next Tesla.
Rivian went public on November 10 in one of the biggest IPOs of the year. It quickly surpassed the market cap of older automakers such as Ford and General Motors, but still lags behind Tesla, which recently surpassed the $1 trillion market cap. Shares continued to rally until Wednesday when the stock closed down 15% as name speculation eased. Rivian has yet to establish a business model and says it expects up to $1 million in revenue in the third quarter.
Shares of Lucid jumped 23% on Tuesday after executives told investors the company saw an increase in reservations for its vehicles and was still on track to build 20,000 Lucid air sedans by 2022. Lucid began commercial production of its air sedan in September. Lucid is up more than 360% year-over-year.
Businesshala’s Jim Cramer on Wednesday urged investors to “remember the lessons” of the dot-com bubble of 1999 and profit from the table.
“If you own a Lucid or Rivian and you’ve made a ton of money, you have my blessing — right here, now, tomorrow morning — to literally take half off the table… and you can let the rest ride.” are,” she said.