Ford sells 8 million Rivian shares, sources say
Production of Rivian R1T electric pickup trucks on April 11, 2022 at the company’s plant in Normal, Ill.
Ford Motor is selling 8 million of its Rivian Automotive shares, the insider lock for the once-high-flying electric vehicle maker’s stock set to expire on Sunday, sources told CNBC’s David Faber.
The automaker currently owns 102 million shares of Rivian. Ford will sell the shares through Goldman Sachs, sources said.
The lockout defines a period of time after a company has gone public when early investors and insiders of the company cannot sell their shares. This ensures that the IPO proceeds in an orderly fashion and does not flood the market with additional shares.
Ford declined to comment when contacted by CNBC.
JPMorgan Chase also plans to sell a block of Rivian shares between 13 and 15 million for an unknown seller, sources told Faber. Both blocks of shares are priced at $26.90 per share.
Shares of the electric vehicle maker have fallen more than 50% in the first three months of 2022, reversing course in the fourth quarter when the company debuted and saw its value soar.
Rivian said in March that it plans to produce 25,000 electric trucks and SUVs this year as the startup battles supply chain constraints and internal production issues. That would be just half of the vehicle production it planned for investors last year as part of its IPO round.
– CNBC’s Michael Wayland and Ari Levy contributed to this report.