Shares of electric vehicle maker Rivian (NASDAQ:RIVN) looked to end a week-long rally Wednesday, as investors pulled back from a monster run as speculation in the name eased after it surpassed Ford (NYSE:F) and GM (NYSE:GM) in market value.
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 is the first to go public at a $100-billion-plus valuation with no revenue. Until the quarterly period ended Sept. 30, the company had not produced or delivered any vehicles.
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 (NASDAQ:TSLA) ($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.
Underneath all the buzz, experts say, the electric vehicle maker brought in about $12B from its IPO and is hoping to ramp up production in 2022. Of note, Rivian has more than 1K open positions listed on LinkedIn, including some with "self-driving" as part of the description.
RIVN shares fell $15.95, or 9.3%, to $155.79.
