Rivian Stock Tumbles on Report Ford is Set to Offload 8 Million Shares
2022.05.09 13:51
Rivian (RIVN) Stock Tumbles on Report Ford (F) is Set to Offload 8 Million Shares
Ford Motor (NYSE:F) plans to offload 8 million of its shares in Rivian Automotive (NASDAQ:RIVN), with the electric carmaker’s initial public offering (IPO) lockup period due to end on Sunday.
Ford holds a total of 102 million shares of Rivian and plans to conduct the sale through Goldman Sachs (NYSE:GS), according to CNBC.
The lockup period refers to a time period after a company’s IPO during which investors and insiders are not able to sell their shares in order to prevent the IPO from flooding the market with new shares.
Another Wall Street banking giant, JPMorgan Chase (NYSE:JPM), also intends to sell a Rivian share block of between 13 million and 15 million for an undisclosed buyer, with each block priced at $26.90 per share.
Rivian’s shares have tanked over 50% in the first three months of 2022, making a sharp U-turn from the fourth quarter when the company’s shares skyrocketed following its IPO.
The automaker said in March it estimated to manufacture 25,000 electric trucks and SUVs in 2022, troubled by supply chain challenges and internal production issues.
Rivian stock price is down 7% in pre-open Monday.
By Senad Karaahmetovic
