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Tuesday, May 24, 2022

Rivian inventory plummets as Ford unloads 8 million shares of EV start-up

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Production of electrical Rivian R1T pickup vehicles on April 11, 2022 on the firm’s plant in Normal, Ill.

Michael Wayland / CNBC

Shares of Rivian Automotive opened Monday at a brand new low following a CNBC report that Ford Motor is promoting 8 million shares of the electrical car start-up.

Rivian’s inventory fell 13% to $25 a share, including to vital losses for the 12 months. Shares of the automaker have been buying and selling decrease throughout early buying and selling Monday after closing Friday under $30 for the primary time because the firm went public by its blockbuster IPO in November. The inventory has fallen 72% this 12 months.

A inventory lockup interval for firm insiders and early buyers resembling Ford expired Sunday.

CNBC’s David Faber reported Saturday that Ford would promote 8 million of its Rivian shares by Goldman Sachs. The Detroit automaker owned 102 million shares of Rivian. A Ford spokesman declined to remark Monday morning.

Faber on Monday known as the sale “done,” saying shares are already being distributed.

JPMorgan Chase additionally plans to promote a Rivian share block of between 13 million and 15 million for an unknown vendor, folks conversant in the plans informed Faber. Both blocks of shares are priced at $26.90 a share.

Rivian mentioned in March it anticipated to provide 25,000 electrical vehicles and SUVs this 12 months, because the start-up battles by provide chain constraints and inside manufacturing snags. That can be simply half of the car manufacturing it forecast to buyers final 12 months as a part of its IPO roadshow.

The firm is scheduled to report its first-quarter outcomes after market shut Wednesday.

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