Ford is selling 8 million Rivian shares, sources say

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

Michael Wayland / CNBC

Ford Motor is selling 8 million of its Rivian Automotive shares, with the insider lock-in for the share of the once high-flying electric car manufacturer set to expire on Sunday, sources told CNBC̵[ads1]7;s David Faber.

The carmaker currently owns 102 million shares in Rivian. Ford will sell the shares through Goldman Sachs, sources said.

The lockup defines a period after a company has been listed on the stock exchange when early investors and insiders in the company cannot sell their shares. This ensures that the listing is carried out in an orderly manner and does not flood the market with additional shares.

Ford declined to comment when contacted by CNBC.

JPMorgan Chase also plans to sell a Rivian share block of between 13 million and 15 million for an unknown seller, sources tell Faber. Both stock blocks are priced at $ 26.90 per share.

The shares of the EV manufacturer have fallen by more than 50% during the first three months of 2022, and turn the price from the fourth quarter, when the company held its stock market debut and saw the value skyrocket.

Rivian said in March that they expected to produce 25,000 electric trucks and SUVs this year, as the startup struggles through supply chain constraints and internal production problems. That would be only half of the vehicle production it proposed to investors last year as part of the IPO roadshow.

– CNBC’s Michael Wayland and Ari Levy contributed to this report.

Source link

Back to top button