Rivian shares fall more than 17% after Ford sale announcement

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Rivian’s share price tumbled more than 17% on Monday, driven by a CNBC report that Ford is selling 8 million shares of the electric car maker.

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Ford owned 12% of Rivian, or about 102 million shares.

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David Faber of CNBC reported over the weekend that Ford will sell 8 million of its Rivian shares through Goldman Sachs. Faber responded on Monday, calling the deal “finished.” The selloff came as an insider lock on the stock expired on Sunday.

TechCrunch will update the article if Ford responds to a request for comment.

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The news further accelerated the decline in Rivian’s share price since last year’s IPO. Rivian debuted as a public company in November with an initial share price of $106.75, making it one of the largest IPOs in U.S. history and placing it in a market capitalization above GM as well as Ford. (At the time, GM had a market capitalization of $86.31 billion, while Ford had a market capitalization of $78.2 billion.)

A week later, Rivian’s share price reached $179.47 before falling back to the ground. Rivian shares have fallen more than 75% since the public market opened.

This free fall also affected its largest shareholders, Ford and Amazon. Ford announced this last month lost $3.1 billion under GAAP in the first quarter, mainly due to the write-down of the value of its stake in Rivian.

Amazon reported on $7.6 billion loss about investing in Rivian.


Credit: techcrunch.com /

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