Ford Motor selling their 8 million stake in Rivian Automotive, a source familiar with the matter told CNBC. Ford currently owns 102 million shares of Rivian. Ford itself will sell their stake in Rivian through Goldman Sachs, the sources said. Ford Motor is selling 8 million of its Rivian Automotive shares as the insider lockup for the stock expires on Sunday. Ford declined to comment, when confirmed about the sale.
Earlier in its first-quarter financial report, Ford suffered a $3.1 billion loss, largely due to a decline in the value of its investment in Rivian.
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Rivian’s share price has continued to decline since its IPO in November and has had a major impact on Ford’s profitability. At the start of the year, Rivian’s stock was around $102. However, it later fell to ~$50 on March 31, 2022.
Meanwhile, JPMorgan Chase also plans to sell Rivian’s shares of around 13 million shares and 15 million shares belonging to an unknown seller. The shares are priced at USD 26.90 per share.
Rivian said it will produce 25,000 electric trucks and SUVs by 2022 amid supply chain constraints and internal production bottlenecks. This amount is only half of the projected vehicle production submitted to investors last year as part of its IPO road show.
In early May, Rivian announced it would receive $1.5 billion in state tax incentives and relief for the construction of a new electric vehicle assembly plant in Georgia.
