Rivian shares slump more than 12%, bucking post-IPO rally

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 12% Wednesday morning.

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.

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