Candorium Free Members
Join Candorium to access the full article and more
Free Member Benefits:
✔
Comment & Reply✔
Newsletter Access✔
Follow Authors✔
Share via SMS Go Back
Rivian plummets as IPO lockup expired, Ford sells 8 million shares of EV startup
By Arghyadeep Dutta - May 09, 2022, 01:42 PM ET
Last Updated - Feb 26, 2024, 02:28 PM EST
CNBC earlier reported Ford would sell 8 million shares of Rivian
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.
Sponsored
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
ALSO READ:
Sponsored
Read More from Market Analysis
Read More from Investing
Popular News
Latest News
