Shortly after Rivian Automotive (RIVN -0.46%) raced onto the scene with its initial public offering (IPO), investors rushed to hitch a ride with the upstart electric vehicle (EV) maker. With plans to offer an electric pickup truck, Rivian captured the hearts of investors, who recognized the stock as a great growth opportunity, and Rivian shares, subsequently, soared.
But it wasn't long before they hit some bumps in the road. For investors who are interested in parking this EV stock in their portfolios, it's certainly worth a look to take a look at Rivian's recent ups and downs.
This EV truck stock has hit one pothole after another
Debuting on the public markets on Nov. 10, 2021, Rivian shares were priced at $78 for their initial public offering (IPO) and ended their first day of trading 29% higher. And the exuberance for Rivian stock continued to accelerate in the coming days. On Nov. 16, Rivian shares reached their all-time high-water mark; after soaring to an intra-day high of $179.47, Rivian's stock closed at $172.01.
Investors were backing up the truck on Rivian stock shortly after its IPO, but the party didn't last. Shares closed 15% lower on Nov. 17, and they have proceeded further south ever since. Between the company downwardly revising production forecasts and its income statements that show multibillion-dollar losses, investors have failed to exhibit the same enthusiasm for Rivian stock. Currently, shares are changing hands at around $10 -- about 94% lower than their all-time high.
Should investors continue to watch from the side of the road?
In light of the free fall that Rivian stock has suffered since its IPO, those looking to add EV exposure to their portfolios may suspect that Rivian is a stock that's better left untouched right now. It's a fair thought, but there are valid reasons to believe that the company still has the potential to prosper thanks to the upcoming launch of its R2 model and the development of a new production facility in Georgia.
