(Bloomberg) — The breathless five-day rally in Rivian Automotive Inc. came to an abrupt halt on Wednesday, wiping out $16 billion from the newly public electric-truck maker’s valuation.
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Shares of the startup, which made its trading debut last week and has had its stock skyrocket over five days, dropped as much as 10% to $153.98 in New York. That took out a chunk roughly equivalent to the size of American Airlines Group Inc. or News Corp.’s current market capitalization.
Despite those declines, Rivian is still worth about $139.6 billion, holding on to its lead over Volkswagen AG, and its position as the third-largest automaker globally by market value.
The rapid rally in Rivian came amid a growing demand among investors for EV-related stocks, as governments and corporations globally announce policies and plans to address the challenges related to climate change. The rise of retail trading trends and a cash-rich environment have added further fuel to the rally.
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