Shares of Rivian Automotive (RIVN) fell more than 21% on news that Ford Motor Co. (F) is
selling eight million shares of the electric vehicle start-up.
Rivian’s stock finished trading yesterday (May 9) at $22.78 U.S. a share, down nearly 21%,
adding to significant losses for the year.
The latest decline marked Rivian’s worst trading day since the company went public through an
initial public offering (IPO) last November. Year to date, Rivian’s share price has fallen 78%.
A stock lock-up period for company insiders and early investors such as Ford expired on
Sunday (May 8).
With that lock-up period ended, Ford is now selling eight million of its Rivian shares through
investment bank Goldman Sachs (GS). Ford had owned 102 million shares of Rivian at the time
the EV start-up went public last autumn.
Bank JPMorgan Chase (JPM) said it also plans to sell a Rivian block of between 13 million and
15 million shares for an unknown seller. Both blocks of stocks are priced at $26.90 U.S. a share.
Rivian said in March that it expected to produce 25,000 electric trucks and SUVs this year, as
the start-up battles through supply chain constraints and production issues. That would be just
half of the vehicle production it forecast to investors last year as part of its IPO roadshow.
