Shares of Rivian plummeted more than 20% after news that Ford & JP Morgan will sell millions of shares in the electric vehicle startup.
Ford, an early Rivian investor, is selling eight million shares from a total of 102 million shares that it owns. For Ford, it could be the start of an unwinding of its Rivian stake or a need for liquidity to inject into its own EV business.
For Rivian, it’s been all downhill since its IPO days. The company recently cut down its production forecasts by half, & its stock is down almost 80% YTD. Early Rivian investor Amazon recently announced a $7.6B loss on its investment in the EV startup.