Rivian shares slump more than 15%, bucking post-IPO rally

Rivian signage at the Nasdaq on their IPO working day, November 10, 2011 in New York.

Source: Rivian

Shares of electric car or truck maker Rivian ended a week-lengthy rally Wednesday, as buyers pulled back again from a monster run as speculation in the identify eased soon after it surpassed Ford and GM in market place value.

The company’s inventory dipped far more than 15% Wednesday morning.

Rivian went public very last Wednesday in 1 of the greatest IPOs of the calendar year. Rivian opened at $106.75 for each share on Nov. 10, its 1st buying and selling working day. It shut at $172.01 on Tuesday.

Rivian rapidly surpassed the industry benefit of regular automakers, like Ford ($79.09 billion, as of Tuesday’s near) and Typical Motors ($90.9 billion). As of Tuesday’s near, Rivian experienced a industry cap of $146.7 billion. The firm’s benefit still lags much guiding rival Tesla ($1.06 trillion).

The firm attracted potent interest from traders, as the demand for electric autos has continued to rise among the buyers. Nonetheless, Rivian has still to display a sustainable organization product. It also expects no additional than $1 million in profits for the 3rd quarter.

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