Ford will sell 8 million shares of Rivian shares after a net loss of $ 3.1 billion

Ford plans to sell 8 million of its Rivian shares. The blockade period for Rivian’s IPO expires on Sunday, May 8th. The blockade period refers to when early investors are unable to sell their shares after the company’s IPO.

Sources said CNBCDavid Faber that Ford will sell its shares of Riviana through Goldman Sachs. JPMorgan Chase will also sell blocks of Rivian shares between $ 13 million and $ 15 million to an unknown seller, at a price of $ 26.80 per share.

Last month, Ford reported a net loss of $ 3.1 billion attributed to the Rivian investment. Shortly after Ford, Amazon reported a loss of $ 7.6 billion on its investment in Rivian.

In March, Rivian said in an SEC submission that he expected to see “permanent losses” in the foreseeable future. “We have overstated net losses since our inception, including net losses of $ 0.4 billion, $ 1.0 billion and $ 4.7 billion for the years ended December 31, 2019, 2020 and 2021,” he reported. is Rivian in the submission.

“We believe we will continue to make business and net losses in the future as we grow, including tracking our initial revenue generation from our vehicles, which began with R1T in September 2021 and R1S and EDV in December 2021. We do not expect to be profitable in the foreseeable future because we invest in our business, build capacity and increase business and we cannot assure you that we will ever achieve or be able to maintain profitability in the future, ”said Rivian.

The electric vehicle manufacturer also said the ongoing Russian invasion of Ukraine has affected its business and business. He admitted to experiencing cost increases and disruptions in the supply of raw materials and other components used in vehicle production.

Many carmakers, including Tesla and Lucid, have spoken openly about the challenges in the supply chain and the rising cost of raw materials. Rising costs of raw materials, logistics and other components have increased vehicle prices.

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Ford will sell 8 million shares of Rivian shares after a net loss of $ 3.1 billion

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