A Rivian block of shares is being sold by an unknown seller. It ranges in price from 13 million to 15 million.
According to sources, Ford will reportedly sell 8 million shares in Rivian this weekend as the inside lockup period for selling shares expires, according to CNBC’s David Faber.
The Blue Oval currently holds 12 percent or approximately 102 million shares of Amazon-backed EV maker. These shares were purchased before Rivian filed an Initial Public Offering (IPO). Sources claim that Ford will sell its 8 million shares via Goldman Sachs.
However, Rivian shares fell 14 percent during mid-day trading following this news Automotive News reports.
Faber reports that an unknown seller is also selling blocks of 13 million to 15 millions Rivian shares. These shares are being sold by JPMorgan Chase & Co. at $26.90 each.
Since last year, the partnership between Ford and Rivian has not been too close. The partnership between Rivian and Ford has reportedly ended in the area of EV production. Jim Farley, Ford CEO, was cited as the source in an interview.
Rivian has a slow start to 2022 in terms of vehicle production. Rivian has produced 2,553 vehicles during Q1 2022 and 1,227 units have been delivered. The California-based EV manufacturer targets to make 25,000 vehicles in 2019.
Rivian’s problems with production are caused by supply disruptions. Rivian’s stock issues result from supply disruption problems, which saw Rivian’s shares lose half of their value in Q1 2022. This was a complete reverse of last year’s trend, when Rivian shares shot up after it went public.
Amazon, which had invested more than $1.3 million in Rivian’s stock, suffered a $7.6 Billion loss. Ford suffered a $5.4 billion loss on its Rivian stake.