Rivian Automotive (NASDAQ: RIVN) was one of the hottest IPOs of 2021. The maker of electric trucks, SUVs, and vans went public at $78 a share in November 2021, and it generated a lot of buzz because its top investors were Amazon (NASDAQ: AMZN) and Ford Motor Company (NYSE: F). Rivian had also started mass-producing its electric vehicles (EVs) ahead of its IPO, which made it seem more reliable than other pre-production EV makers that went public by merging with special purpose acquisition companies (SPACs).

Rivian's stock opened at $106.75 on the first day and skyrocketed to an all-time high of $172.01 just a week later. But today it trades at about $20 a share. A $3,000 investment in its IPO would have blossomed to over $6,600 before withering to less than $800 today. Let's see why Rivian's stock initially soared, why it plummeted, and where it might be headed in a year.

Image source: Rivian.

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Source Fool.com