Manufacturing of electrical Rivian R1T pickup vans on April 11, 2022 on the firm’s plant in Regular, Sick.
Michael Wayland / CNBC
Shares of Rivian Automotive plummeted in premarket buying and selling Monday following a CNBC report that Ford Motor plans to sell 8 million shares of the electrical automobile start-up.
Rivian’s inventory was down 19% in prolonged buying and selling to beneath $24 a share, poised so as to add to important losses for the yr. Shares of the automaker closed Friday beneath $30 for the primary time because the firm went public by means of its blockbuster IPO in November. The inventory is down 72% this yr.
A inventory lockup interval for firm insiders and early traders similar to Ford expired on Sunday.
CNBC’s David Faber reported on Saturday that Ford would promote 8 million of its Rivian shares by means of Goldman Sachs. The Detroit automaker at present owns 102 million shares of Rivian. A Ford spokesman declined to remark Monday morning.
JPMorgan Chase additionally plans to promote a Rivian share block of between 13 million and 15 million for an unknown vendor, folks accustomed to the plans informed Faber. Each blocks of shares are priced at $26.90 a share.
Rivian mentioned in March it expected to produce 25,000 electric trucks and SUVs this year, because the start-up battles by means of provide chain constraints and inside manufacturing snags. That may be simply half of the automobile manufacturing it forecast to traders final yr as a part of its IPO roadshow.
The corporate studies its first-quarter outcomes after market shut on Wednesday.
