Ford plans to sell millions of shares of the electric vehicle (EV) maker, Rivian. It is in time with the expiration of the post-IPO lockup period of the R1T EV pickup manufacturer.
It is worth noting that the American automaker, Ford, has recently started shipping its own electric pickup truck, in the flesh of its all-new F-150 Lightning.
Meanwhile, the EV maker Rivian also recently debuted its all-electric mid-size pickup that goes by the name R1T.
RICHMOND, CA – NOVEMBER 02: Cars are reflected in the grill of a new Ford truck November 2, 2009 in Richmond, California.
Ford to Sell Millions of Rivian Shares
Despite that, Ford still owns roughly around a whopping 102 million shares of the American EV manufacturer, Rivian, as per a news story by CNBC.
However, according to the unnamed sources of the giant media outlet, Ford is now planning to sell millions of the Rivian shares that it owns.
It comes as the lockup period for the shares of Rivian is already expiring, which essentially means that investors and company insiders could start selling it.
CNBC explained in its report that the lockup is in place to avoid flooding the market with additional shares early on. Not to mention that it is also there to ensure that the IPO of a company will not turn into chaos.
However, Ford has yet to confirm reports saying that it plans to sell millions of its Rivian shares. It is to note as well that the automaker declined to provide any statement when the news outlet tried to reach out to them.
The anonymous source further revealed that Ford also plans to sell its Rivian shares to the investment firm Goldman Sachs.
JPMorgan Chase and Rivian Shares
On top of that, another giant investment bank, JPMorgan Chase, reportedly plans to sell millions of Rivian shares as well, sources claimed.
To be more specific about it, JPMorgan Chase is looking to sell a staggering 13 million to 15 million shares of the EV maker to an unnamed seller.
Rivian Shares
Although Rivian has begun rolling out its electric truck, the share price of the EV maker has plunged dramatically in recent months.
NEW YORK, NEW YORK – NOVEMBER 09: The new all-electric pickup truck by Rivian, the R1T, sits at one of its facilities on November 09, 2021 in the Brooklyn borough of New York City.
In fact, according to a recent report by Fox Business, the share price of Rivian has recently closed to $28.79. To provide more context, the current price is down by 84% from its all-time-high performance.
What’s more, CNBC noted in its news story that the shares of the EV maker have dropped by over 50% in the first quarter of 2022.
As such, Ford already reported a net loss to the tune of $3.1 billion in the first three months of the year, blaming its stake at Rivian.
Keyword: Ford To Sell Millions of EV Maker Rivian Shares — Price Plummets by 50%?