Rivian skids to a record low on report Ford selling shares

Rivian is struggling in a aggressive market, together with competitors from Ford's F-150 Lightning electrical pickup truck.
REUTERS

Shares of Rivian Automotive hit a report low on Monday, down 16%, after a report that early investor Ford could be promoting part of its stake within the electric-car maker.

Rivian’s shares have been buying and selling at $24.09, a far cry from their report of $179.5 in November final yr.

Ford is promoting 8 million of its Rivian shares because the inventory’s lockup interval expired on Sunday, CNBC reported over the weekend, citing sources. Ford was Rivian’s fourth largest shareholder with an 11.4% stake, in accordance with Refinitiv knowledge.

Rivian is struggling in a aggressive market, together with competitors from Ford’s F-150 Lightning electrical pickup truck, whereas a provide chain disaster is limiting manufacturing at its vegetation.

The electrical-car maker earlier lower its deliberate 2022 manufacturing in half to 25,000 autos attributable to provide chain points.

The Irvine, California-based firm has misplaced roughly three-quarters of its worth this yr, whereas delivering just one,227 vehicles within the first quarter.

Amazon, Rivian’s second-biggest shareholder with a 17.7% stake, recorded a 59% fall in working earnings in its first quarter largely damage by its investments within the carmaker. Amazon can also be considered one of Rivian’s key clients and is anticipating to obtain 100,000 supply vans by 2024. 

Ford was Rivian’s fourth largest shareholder with a 11.4% stake.

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JPMorgan Chase additionally plans to promote a Rivian share block of between 13 million and 15 million from an unknown vendor, CNBC reported, priced at $26.90 a share, much like Ford’s.

The businesses weren't instantly obtainable for a remark.

Shares of friends additionally declined as buyers fear whether or not new electric-car makers can manufacture sufficient electrical autos to satisfy hovering demand amid provide chain points and rising materials prices.

Lordstown Motors’ shares fell 13% after the corporate stated it wanted extra funds to place its Endurance pickup truck on the highway.