The Clap
Ford Motor (NYSE: F) will sell 8 million shares of Rivian Automotive (NASDAQ: RIVN), according to CNBC, as the insider lockup period for the stock expires on Sunday.
Claps Class
An insider lock-up period is a period of days after an IPO when shares cannot be sold by company insiders such as founders, owners, managers, & employees but may also include early investors. This ensures the IPO is carried out in an orderly manner & does not flood the market with additional shares.
In this case, Ford is an early investor, along with Amazon & a Saudi car company.
Why this matters
Rivian shares saw an incredible increase in their price following the company’s IPO, giving it a market value higher than automaker giants Ford & GM. The stock’s price went downhill from there, & is down more than 70% since the start of 2022.
