Rivian’s inventory value fell greater than 17% Monday, a drop prompted by a CNBC report that Ford was promoting 8 million shares of the EV automaker.
Ford held a 12% stake, or about 102 million shares, of Rivian.
Over the weekend, David Faber of CNBC reported that Ford would promote 8 million of its Rivian shares by means of Goldman Sachs. Faber adopted up on Monday, describing the sale as “completed.” The sell-off got here as an insider lockup for the inventory expired Sunday.
TechCrunch will replace the article if Ford responds to a request for remark.
The information has additional accelerated the decline of Rivian’s share value since its IPO final yr. Rivian debuted as a publicly traded firm in November with a gap share value of $106.75, a value that made it one of many largest IPOs in U.S. historical past and put its market cap above GM in addition to Ford. (On the time, GM’s market cap was $86.31 billion; Ford’s was $78.2 billion.)
Rivian’s share value reached as excessive as $179.47 per week later, earlier than coming again right down to earth. Rivian shares have fallen greater than 75% since its public market opener.
That freefall has additionally affected its largest shareholders, Ford and Amazon. Final month, Ford reported it misplaced $3.1 billion in GAAP phrases in Q1, largely resulting from a write-off of the worth of its stake in Rivian.
Amazon reported a $7.6 billion loss on its funding in Rivian.