Rivian drops 18% in its first down day as a public company following massive post-IPO surge

• Rivian fell as much as 18% in its first down day as a public company after it went public last week.
• The electric truck manufacturer has surged as much as 130% from its IPO price of $78 per share.
• The big up and down moves highlight the heightened volatility Rivian stock poses to investors.

Rivian stock fell as much as 18% on Wednesday after $4 sending the electric truck maker towards what would be its first down day as a public company.

Amid an ongoing boom in electric vehicle stocks, Rivian has soared as much as 130% from its IPO price of $78 per share, giving the automaker $4 That valuation makes it more valuable than $4, $4, and Volkswagen, despite the fact that it has yet to generate significant revenue from its operations.

Rivian can count its five consecutive daily gains post-IPO as a unique feat, especially given its large market value, and it signals that demand for shares remains strong as investors hope to replicate the success of an early $4 investment.

But the strong up and down trading in shares of Rivian highlights the heightened volatility risk for investors buying the company before it reports earnings and ramps up vehicle production.

While Rivian can rely on its more than 50,000 reservations for its $70,000 trucks and a 100,000 electric delivery van order from $4, the company is still years out from reaching the same type of scale that has led to big profits for Tesla in recent quarters.

And competition in the EV space is heating up, as both new entrants and legacy automakers seek to wow customers with sleek designs and modern technologies. While Ford and General Motors have $4 for its F-150 Lightning and electric Hummer, respectively, new auto startups are also impressing consumers.

$4, an EV maker going after the luxury sedan market, $4 after its Air model received $4 award for 2022.

Besides competition, Rivian will have to show it's able to manage ongoing supply chain disruptions and rising input costs if it wants to please shareholders and maintain its sky-high valuation when it reports earnings later this year. $4 on a Rivian forum point to supply constraints leading to 3-month delivery delays for some of its early customers.

But $4 so the investors' focus will likely remain fixated on demand as electric vehicle company's look to capitalize on a new and fast-growing market.