Electric vehicle company Rivian saw its stock crash following the announcement that it no longer plans to co-develop an EV with Ford.
Rivian, the Amazon- and Ford-backed EV company, started its initial public offering on Wednesday, Nov. 10 in what has become 2021’s biggest IPO, as GOBankingRates previously reported. It also places the company in the second spot, behind Tesla, as the largest U.S. carmaker.
Rivian shares were up 57% in their first two days on the Nasdaq. Rivian ended its first day as a public company valued at almost $88 billion, more than tripling its last private valuation. This put the EV manufacturer on par with General Motors Co. and more valuable than Ford Motor Co., one of its top investors — as well as EV rival Lucid Group Inc., per Bloomberg. When estimated a value on a fully diluted basis, the Irvine, California-based company is valued at about $98 billion, according to Bloomberg. The company raised $12 billion, the most substantial figure for a U.S. firm since Facebook attracted $16 billion in 2012, CNN reported.
In May, Ford announced it had invested $500 million into Rivian, a press release stated.
Ford retains a 12% stake in Rivian, and during the company’s IPO last week, this holding reached a value of more than $10 billion, according to CNBC.
“We respect Rivian and have had extensive exploratory discussions with them, however, both sides have agreed not to pursue any kind of joint vehicle development or platform sharing,” Ford wrote in an emailed statement, according to CNBC.
Rivian, currently enjoying a greater market value than Ford, confirmed termination of plans on Friday per CNBC.
“As Ford has scaled its own EV strategy and demand for Rivian vehicles has grown, we’ve mutually decided to focus on our own projects and deliveries. Our relationship with Ford is an important part of our journey, and Ford remains an investor and ally on our shared path to an electrified future,” the company said in an emailed statement to CNBC.
More from GOBankingRates
This article originally appeared on GOBankingRates.com: Rivian Stock Crashes After Blockbuster IPO As Ford Co-Development Plans Canceled