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With the lockdown period in for selling shares expiring this weekend, Ford is reportedly selling 8 million of its stake in Rivian, according to CNBC source David Faber.
Blue Oval currently owns 12 percent of the Amazon-backed EV maker or about 102 million shares. This was obtained before Rivian submitted an Initial Public Offering (IPO) last year. According to the source, Ford will sell its 8 million shares through Goldman Sachs.
However, following this news, shares in Rivian were down 14 percent in midday trading, Automotive News report.
Correspondingly, an unidentified seller is also reported to have sold 13 million to 15 million blocks of Rivian shares, according to Faber. It is handled by JPMorgan Chase & Co. and is priced at $26.90 per share.
The partnership between Ford and Rivian has not been very close since last year. The two companies are reportedly splitting up when it comes to EV production, with Ford CEO Jim Farley cited as a source in an interview.
Rivian faced a slow start in terms of vehicle production during the first three months of 2022. The company had built 2,553 vehicles in Q1 2022, with 1,227 units delivered. Even so, the electric car manufacturer from California is targeting to produce 25,000 units of vehicles this year.
Rivian’s production woes stem from problems related to supply disruptions. That fact translates to stock issues for Rivian, with the company’s stock losing half its value during Q1 2022. This is a complete reversal from what happened last year when Rivian’s stock skyrocketed after going public.
Amazon, which invests more than $1.3 billion in Rivian, reportedly lost $7.6 billion after the company’s stock plunge. Ford lost $5.4 billion of its Rivian stock.
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