The Clap
Shares of Rivian plummeted more than 20% after news that Ford & JP Morgan will sell millions of shares in the electric vehicle startup.
Ford’s perspective
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.
Rivian’s case
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.
