Ford sells 8 million Rivian shares, sources say

Production of Rivian R1T electric pickup trucks on April 11, 2022 at the company’s plant in Normal, Illinois.

Michael Wayland / CNBC

Ford Motor is selling 8 million of its Rivian Automotive shares, with the insider lock-up on the stock of the once-high-flying electric vehicle manufacturer set to expire Sunday, sources told CNBC’s David Faber.

The automaker currently owns 102 million shares of Rivian. Ford will sell the shares through Goldman Sachs, sources said.

The lock-up defines a period after a company goes public when early investors and company insiders are unable to sell their shares. This ensures that the IPO proceeds in an orderly manner and does not flood the market with additional shares.

Ford declined to comment when CNBC contacted him.

JPMorgan Chase also plans to sell a Rivian block of shares worth between 13 million and 15 million for an unknown seller, sources told Faber. Both blocks of shares are priced at $26.90 per share.

Shares of the EV manufacturer plunged more than 50% in the first three months of 2022, compared to the fourth quarter, when the company made its IPO and saw its value skyrocket.

Rivian said in March it expected to produce 25,000 electric trucks and SUVs this year as the start-up struggles with supply chain constraints and internal manufacturing issues. That would be just half of the car production it forecast to investors last year as part of its IPO roadshow.

— Michael Wayland and Ari Levy of CNBC contributed to this report.

Leave a Comment