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Stock lockup period for some insiders and early investors has expired on Sunday
Rivian Automotive Inc (NASDAQ: RIVN) plunges to the latest low on Monday as the share lockup from the initial public offering has expired, and some early stakeholders are planning to unload shares.
Shares of Rivian dropped more than 20% to $23 a share, adding to significant losses for the year. The stock had already collapsed 82% from its November high through Friday.
Selling restrictions on some early investors ended on Sunday, freeing up a sizable chunk of the electric-vehicle maker’s float for public trading. It is estimated that around 720 million Rivian shares have become eligible for sale as the market opened.
Moreover, the electric vehicle startup’s two most prominent backers — Amazon.com Inc (NASDAQ: AMZN) and Ford Motor Co (NYSE: F) — own almost 30% of the company.
While Amazon holds about a 17.7% stake in Rivian, Ford owns 11.4%.
On Saturday, CNBC’s David Faber tweeted that Ford, which currently owns 102 million shares in the electric carmaker, is selling 8 million shares through Goldman Sachs.
“Sources also tell me JP Morgan selling a 13-15m share block for unknown seller. Both blocks priced at $26.90,” he said in the tweet.
The company is scheduled to report its first-quarter earnings on Wednesday after market close.
Picture Credit: CNet
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