Rivian stock plunged 22% on Monday after CNBC reported that Ford is selling millions of shares.- The expiration of
Rivian 's lock-up period means insiders can now sell shares in the company following its November IPO. Rivian is down more than 80% from its peak, when the EV truck company was valued at $153 billion.
Rivian stock plunged 22% on Monday as its early investors take advantage of the expiration of its lock-up period and sell millions of shares.
CNBC reported over the weekend that Ford is selling 8 million of its Rivian shares through a block trade with Goldman Sachs. Ford owned about 12% of the electric truck manufacturer, or about 102 million shares, prior to the sale.
Meanwhile, JPMorgan is selling a block of 13 million to 15 million Rivian shares for an unknown seller, CNBC reported. Both share blocks are priced at $26.90, which represents a 6.7% discount to Friday's close.
The unknown seller could be Amazon, which owns about 18% of Rivian, or about 158 million shares, and was an early investor in the company. Both Ford and Amazon revealed billion-dollar losses related to their Rivian stakes in their most recent earnings calls.
Rivian went public in November and saw its valuation peak at $153 billion. The company was briefly worth more than Ford despite it having delivered just a couple thousand vehicles since its inception.
But supply chain disruptions have led Rivian to delay some of its deliveries and raise prices on its flagship car by more than $10,000. That, combined with rising interest rates, have led investors to focus more on valuations and less on growth at any price. Rivian's valuation has fallen to just $23 billion today.
Lock-up periods often last about six months after a company goes public. The period prevents company insiders and early investors from selling their shares.