Shares of Rivian Automotive dropped over 15% on Monday after CNBC’s David Faber posted on Twitter that Ford Motors is planning on using Goldman Sachs to facilitate the sale of 8 million of its Rivian shares. Ford took a stake in the electric automaker last year and currently owns approximately 12% of the company.
Despite holding one of the most significant stakes in Rivian with 102 shares before the weekend, Ford has declined to formally commit to the electric automaker, especially as Ford’s electric F-150 Lightning pickup truck continues to exceed demand expectations. Ford denied requests for comments on the matter.
Faber’s Twitter post also indicated that JPMorgan Chase & Co. has plans to sell “a Rivian share block of between 13 million and 15 million for an unknown seller.”
Supply chain issues, high inflation, and rising costs of raw materials are likely some factors affecting Rivian’s performance, as investors are questioning whether or not the automaker will be able to meet its plan of producing 25,000 vehicles this year.
Rivian’s stock has dropped 72% this year alone and over 80% since the company’s initial public offering in November. Rivian’s market value had risen to more than $100 billion, higher than General Motors’s and Ford’s at that time.
Rivian’s first-quarter results are expected to be released on Wednesday.
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