Rivian Automotive (NASDAQ: RIVN) is currently in freefall mode in premarket trading. The tumble follows reports that major investors, including Ford Motor Co (NYSE: F), are looking to exit portions of their stake following a hold period expiring.
Rivian is currently down a whopping 18.17% to $23.56 in premarket trading, following the expiration of the lockup period associated with its initial public offering expiring on Sunday. With the removal of the lockup condition, its been widely reported that Ford is now looking to dispose of a total of 8.0 million shares in the issuer.
Given Ford’s current ownership stake of 102 million shares, the sale doesn’t even represent 10% of the automakers stake in the electric vehicle producer. However, its another negative news story in a market that has seen the valuation of electric vehicle manufacturers fall significantly.
In addition to the sale by Ford, another undisclosed shareholder is reportedly looking to offload between 13 and 15 million shares of the issuer via JPMorgan Chase.
Both Ford and the undisclosed party are looking to sell shares at a reported price of $26.90 each, which represents a discount to the Friday close of Rivian, which stood at $28.79.
Comparatively, Rivian went public at an initial public offering price of $78.00 per share. Thus, the sales at $26.90 represent a substantial loss for anyone whom is now able to sell those shares as of the market open this morning.
Rivian Automotive last traded at $28.79 on the Nasdaq.
Information for this analysis was found via CNBC and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.