Rivian shares fall sharply as Ford sells electric vehicle starter shares

Production of electric trucks Rivian R1T April 11, 2022 at the company’s factory in Normal, Ill.

Michael Wayland / CNBC

Shares of Rivian Automotive fell sharply before trading on Monday after CNBC reported that Ford Motor was selling 8 million shares of electric vehicle startup.

Rivian shares fell 19% in extended trading to below $ 24 a share, which could increase significant losses this year. Shares of the carmaker closed below $ 30 on Friday for the first time since the company went public through an IPO in November. Shares have fallen 72% this year.

The stock lockout period for company insiders and first investors like Ford expired on Sunday.

David Faber of CNBC reported on Saturday that Ford will sell 8 million of its Rivian shares through Goldman Sachs. The Detroit-based carmaker owned 102 million shares of Rivian shares. A Ford spokesman declined to comment Monday morning.

Faber called the sale “done” on Monday, saying the shares were already being distributed.

JPMorgan Chase also plans to sell a package of Rivian shares worth between 13 and 15 million to an unknown seller, people familiar with the plans told Faber. Both stock packages are priced at $ 26.90 per share.

Rivian said in March that he expects to produce 25,000 electric trucks and SUVs this year as the start-up struggles with supply chain constraints and in-house production. That would be only half of the vehicle production he envisioned for investors last year as part of his IPO fair.

The company is expected to report its results in the first quarter after closing the market on Wednesday.

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