Rivian Stock Takes a Nosedive as Ford Sells 8 Million Shares

Rivian’s stock price has fallen to around $24 per share, following a report from CNBC that Ford would be selling eight million of its shares in the company.Ford originally had an 11.4 percent stake in Rivian, equivalent to 102 million shares, and Ford would not comment on the matter.Rivian stock debuted at $78 per share last November, but has fallen by around 70 percent this year.

When electric truck startup Rivian went public last November, its IPO was the biggest for an American company since Facebook debuted on the stock market in 2012, with an initial valuation northwards of $77 billion. Since then, Rivian’s stock price has fallen significantly, dropping by 72 percent this year. Now it has plummeted even further after a report from CNBC that Ford is selling eight million of its shares in Rivian.

A stock lockup period—a length of time after an IPO when early investors and company insiders are prevented from selling their shares—expired on Sunday, and on Saturday CNBC reported that Ford would be shedding eight million Rivian shares. Ford previously owned around 102 million shares in the EV startup, or around 11.4 percent of the company, so it will still retain a sizable stake in Rivian. A Ford representative told Car and Driver that “We haven’t been and aren’t presently commenting on Rivian, including about CNBC’s report.”

The news caused Rivian shares to drop by more than 15 percent to around $24 per share, according to CNBC. Rivian’s stock had debuted at $78 per share in November of last year, and early on rose well above $100 per share. CNBC reports that JPMorgan Chase will also be selling between 13 and 15 million shares for an unknown seller. Rivian is expected to report its first quarter results on Wednesday.

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