Rivian’s stock fell 14%, a new all-time low for the company after reports that Ford will sell its shares.
On Monday, Rivian Automotive Inc.’s shares hit a record low at 14% after reports that Ford will sell part of its stake in the electric car maker –following the expiration of the company’s IPO lockup period.
Rivian shares were trading at around $23 per share, a big decrease from their highest record of $179.5 in November last year.
The stock was hit hard after reports that Ford will sell 8 million of its 102 million shares in the electric vehicle maker. Ford is Rivian’s 4th largest shareholder with an 11.4% stake.
JPMorgan Chase also plans to sell between 13 million to 15 million Rivian shares on behalf of an unidentified seller, according to CNBC.
Both companies did not make comments on the reports.
“The report of Ford selling 8 million shares is not what any Rivian investor wants to see,” said Dan Ives, a tech analyst for Wedbush Securities. “The stock has been a debacle since the IPO. I think you’re seeing with lockup ending, investors are hitting the sell button in a jittery market.” –According to CNN.
Rivian’s largest investor is Amazon which owns nearly 18% stake; however, it is unlikely for Amazon to sell its stake since they signed a deal with Rivian for 100,000 electric vans by 2030.
“Rivian is an important partner for Amazon, and we are excited about the future,” said an Amazon spokesperson.” Putting 100,000 electric delivery vehicles on the road by 2030 is no small feat, and we remain committed to working with Rivian to make it a reality.”
Rivian already had a rough start in the first quarter of 2022, delivering only 1,227 units. The automaker is also struggling in the competitive market. Due to supply chain issues, Rivian also had to cut its production plans in half to 25,000.