Rivian stock plummets as Ford sells 8 million shares in the company

Rivian stock plummets as Ford sells 8 million shares in the company
  • Rivian’s stock prices hit extreme lows reporting a 72% drop this year
  • Previously Ford accounted for a total of 102 million shares in the EV maker
  • Speculations have affected Rivian shares, declining the stock prices by more than 15% to some $24 per share

Rivian, electric truck startup reported the biggest IPO (Initial Public Offering) last November for an American company following Facebook’s debut into the stock market back in 2012.

After the initial valuation of around $77 billion, Rivian somehow failed to attract similar luck with a consistent decline in its stock prices, which stooped by 72% this year.

Speculations have it that the stock prices of the EV company have further fallen down after a credible site reported that Ford plans to sell 8 million of its shares in Rivian.

While the conjectured shedding of Rivian shares as big as 8 million by Ford was reported on Saturday (May 7, 2022), the stock lockup period, which refers to the timeline after an IPO that prevents both early investors and company insiders from selling their shares, expired on Sunday (May 8, 2022).

Previously, the multinational automotive manufacturer owned some 102 million shares in the EV startup accounting for around 11.4% of Rivian, indicating that despite the speculated decision to sell a certain portion of shares, the company will still retain a sizeable stake in Rivian.

Even though Ford representative has refrained from commenting on the Rivian news, the conjecture has certainly made its effect on the EV startup’s shares, shooting it down by more than 15% to around $24 per share.

In November last year, Rivian’s stock debuted at a rate of $78 per share with a promising response in the beginning, spiking above $100 per share.

Moreover, credible sources have reported that, investment banking company, JP Morgan Chase also plans to sell somewhere between 13 million to 15 million shares for an anonymous seller.

Source Credit: https://www.yahoo.com/now/rivian-stock-takes-nosedive-ford-144100223.html