Rivian Automotive Inc. stock fell by as much as 18% Wednesday to mark its first stumble since it took Wall Street by storm last week in the year’s biggest initial public offering and one that was among the largest U.S. deals in nearly three decades.
shares pared some losses, and ended down 15% for the day. That has brought the electric-vehicle maker’s valuation to $126 billion, down by about $20 billion from Tuesday, when the stock rallied.
Related: A new Big Three? Rivian and Lucid’s valuations are accelerating past Ford, GM
In comparison, the S&P 500 index
fell 0.3% on Wednesday, and losses for other legacy auto and EV makers stayed in the single digits, with Tesla and GM bucking the trend to gain around 3% each.
Rivian stock had been on a tear since the company went public last week, pricing its upsized IPO well above the expected range. The EV maker’s valuation easily surpassed Ford Motor Co.
and General Motors Co.’s
valuations, and was second only to Tesla Inc.
in market capitalization.
See also: More electric pickup trucks are coming to market. The question now is who will buy them?
Rivian has delivered a smattering of EV pickup trucks, with volume sales and the debut of a second vehicle, an SUV, planned for next year. GM and Ford, of course, sell millions of vehicles a year and have set their sights on EVs as well, including offering electric versions of some of their popular pickup trucks and SUVs.