Rivian shares slump 9%, bucking post-IPO rally

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  • Rivian went public last Wednesday in one of the biggest IPOs of the year.
  • But shares ended a week-long rally on Wednesday as investors pulled back from a monster race as speculation in the name eased.
  • The company’s stock is down more than 9%.

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Shares of electric vehicle maker Rivian ended a week-long rally on Wednesday as investors pulled back from a monster race as speculation in the name eased after outpacing Ford and GM in market value.

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The company’s stock fell more than 9% on Wednesday morning.

Rivian went public last Wednesday in one of the biggest IPOs of the year. Rivian opened on its first trading day on November 10 at $106.75 per share. It closed on Tuesday at $172.01.

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Rivian quickly outpaced the market value of traditional automakers such as Ford ($79.09 billion as of the end of Tuesday) and General Motors ($90.9 billion). As of the end of Tuesday, Rivian had a market capitalization of $146.7 billion. The company’s value still lags far behind rival Tesla ($1.06 trillion).

The company attracted strong interest from investors, as the demand for electric vehicles among consumers continues to grow. However, Rivian hasn’t shown a sustainable business model yet. It does not expect more than $1 million in revenue for the third quarter.

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