Rivian Stock Slumps After Rocketing Post-IPO – Investor's Business Daily

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Recent IPO Rivian (RIVN) sank 15.5% Thursday, after falling 15% on Wednesday. RIVN stock is taking a breather after surging 72% in its first five days of trading. Rivian stock fell amid a downturn among other EV startups.

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Fisker (FSR) was down 6.2% on Thursday, after dropping 9.6% Wednesday. Lucid (LCID) sank 10.5%.

But Tesla (TSLA) edged up 0.7%, following Wednesday’s 3.3% pop. Tesla stock tumbled 15% last week, as CEO Elon Musk began selling a 10% stake of his ownership in the EV giant.

Rivian Stock

Shares slumped 13% to 127.49 on the stock market today, but RIVN stock is still 63% above its $78 IPO price. As of Nov. 18, Rivian stock has a market cap of about $109 billion.

Rivian’s valuation is higher than General Motors‘ (GM) current market cap of around $90.5 billion and Ford‘s (F) $78.2 billion.

However, rival Tesla has a higher valuation at $1.1 trillion, and so does Toyota Motor (TM) at about $256 billion.

While Rivian has begun deliveries of its R1T electric pickups, the company is not yet profitable. In fact, the company expects losses to continue as it spends on ramping up production for some time.

And despite its impressive IPO, until RIVN stock establishes a track record, investors won’t have a clear buy point. Instead, investors should track the stock over several days or weeks. Look to see if Rivian stock can form an IPO base.

Meanwhile, Lucid stock sank 12% to 46.49, after falling 5.4% on Wednesday. LCID stock surged 24% on Tuesday after it posted a better-than-expected quarterly report, as well as accelerating reservations for its luxury sedan, the Lucid Air.

Among other EV stocks, China-based Xpeng (XPEV) fell about 2%, Nio (NIO) was down 3.2% and Li Auto (LI) lost 3.7%. Warren Buffett-backed BYD (BYDDF) gained 1.1%.


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Rivian IPO

The Rivian IPO came with much fanfare and didn’t disappoint. The company, which will also make an SUV and an electric delivery van, priced an upsized 153 million shares at $78 a share on Nov. 9. That was above the already-raised price range of $72-$74. Rivian had originally planned to offer 135 million shares. The RIVN IPO raised $11.9 billion.

That made Amazon-backed Rivian the largest IPO so far in 2021 and the largest since Alibaba (BABA) in 2014, according to Renaissance Capital, manager of two IPO-focused exchange traded funds. In comparison, the Alibaba IPO raised $25 billion.

Rivian plans to use those proceeds to build new assembly and battery plants in the U.S. and abroad.

Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.

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