Post-IPO: Rivian Shares Fall to All-Time Lows: Standstill Period Expired | news

Newspapers fell to a record low of US$23.00 and at times lost 18.88% to $23.35. Tech stocks (NASDAQ Composite Index) in general also came under a lot of pressure early in the week.

Stockbrokers justified Rivian’s price drop by saying the standstill period for existing shareholders after the November IPO expired on Sunday. This is intended to prevent large investors from selling their shares shortly after the IPO and thereby putting pressure on the price. But now there is speculation that the two biggest shareholders, online retailer Amazon or automaker Ford, could have parted ways with Rivian.

Media reported that Ford may have sold Rivian paper rather than Amazon. Investment bank Robert W. Baird analyst George Gianarikas wrote in early May that he wouldn’t be surprised if Ford sold shares of the electric car maker after the end of the status quo period. After all, Ford is already celebrating its first successes with its own electric pickup. Rivian also manufactures an electric pickup truck. Neither Ford nor Amazon would comment on the speculation.

Rivian went public on November 10. It was the largest U.S. IPO of 2021 and the sixth largest in U.S. history. With growing pressure from governments around the world to move towards alternative transportation options, investors were hungry for investment opportunities in electric vehicles. However, due to supply chain issues, Rivian struggled to ramp up production at its Illinois plant as usual.

Just a week after the IPO, Rivian’s shares had skyrocketed to $179 and were therefore briefly priced on the stock market higher than German industry leader Volkswagen (VW). But shortly after the intermediate high, the descent began. By mid-December, the paper was again under $100. The $50 threshold was then crossed in early March.



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