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