Rivian shares slump in premarket trading, bucking post-IPO rally
Rivian went public last Wednesday in one of the biggest IPOs of the year.
Lynk
Rivian signage at the Nasdaq on their IPO day, November 10, 2011 in New York.
Source: Rivian
Shares of electric vehicle maker Rivian ended a week-long rally Wednesday, as investors pulled back from a monster run as speculation in the name eased after it surpassed Ford and GM in market value.
The company's stock dipped more than 7% in the pre-market.
Rivian went public last Wednesday in one of the biggest IPOs of the year. Rivian opened at $106.75 per share on Nov. 10, its first trading day. It closed at $172.01 on Tuesday.
Rivian quickly surpassed the market value of traditional automakers, like Ford ($79.09 billion, as of Tuesday's close) and General Motors ($90.9 billion). As of Tuesday's close, Rivian had a market cap 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 has continued to rise among consumers. However, Rivian has yet to show a sustainable business model. It also expects no more than $1 million in revenue for the third quarter.
