rivian-wipeout-after breathless-rally-may-mean-$15-billion-of-lost-value

Rivian Wipeout After Breathless Rally May Mean $15 Billion of Lost Value

Rivian Wipeout After Breathless Rally May Mean $15 Billion of Lost Value

(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.

Most Read from Bloomberg

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.

(Updates stock moves throughout and adds details in fourth paragraph.)

Most Read from Bloomberg Businessweek

©2021 Bloomberg L.P.