The blockbuster IPO of Rivian Automative (NASDAQ: RIVN) is rapidly fading in the rear-view mirror. The debut stock was originally priced at $78 and quickly accelerated to a peak of ~$130, as investors were keen to find the “next Tesla”. RIVN has been on a descending road since, dropping to new lows and currently trading at $88.

In our IPO post, we highlighted the high risk and eye-watering valuations linked to RIVN being an auto-maker with heavy losses and no commercial production yet.

The stock was down 10% on Friday and is down nearly another 10% today, as the company stated that the production ramp-up was behind schedule due to supply chain issues and that they expect to miss the 2021 target of producing 1,200 vehicles. The company also reported its first quarterly results as a public company, which saw a net loss that doubled since Q2.

Despite the stuttering start, RIVN is incredibly the third largest auto company by market cap. Whilst there is a lot of hype and potential in this company to become an EV-market disruptor, RIVN will need to start delivering results sooner rather than later.

AlphaPicks does not own a position in Rivian. To trade shares, register here with our preferred partner, EToro.

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