Shares of Rivian Automotive Inc opened at a report very low on Monday, down 14%, after a report that early investor Ford would be selling a portion of its stake in the electrical-motor vehicle maker.
Rivian’s shares had been buying and selling at $24.77, a far cry from their file of $179.50 in November past yr.
Ford is offering 8 million of its Rivian shares as the stock’s lockup time period expired on Sunday, CNBC claimed over the weekend, citing sources. Ford was Rivian’s fourth major shareholder with a 11.4% stake, in accordance to Refinitiv data.
Rivian is having difficulties with a offer chain disaster that has limited its output just as it was starting off to get underway at its factory in Regular, Illinois. The enterprise before lower its planned 2022 creation in 50 percent to 25,000 cars owing to source chain difficulties.
The Irvine, California-dependent corporation has shed around three-quarters of its value this year, although delivering only 1,227 vehicles in the initially quarter.
Amazon.com Inc, Rivian’s next-most significant shareholder with a 17.7% stake, recorded a 59% slide in working cash flow in its first quarter, mostly hurt by its investments in the carmaker. Amazon is also one particular of Rivian’s key clients and is anticipating to acquire 100,000 shipping vans by 2024.
JPMorgan Chase also ideas to market a Rivian share block of among 13 million and 15 million from an unknown seller, CNBC claimed, priced at $26.90 a share, very similar to Ford’s.
The companies had been not quickly offered for a comment.
Shares of other new electrical-auto makers have also declined as traders be concerned regardless of whether these start out-ups can manufacture ample electric powered vehicles to satisfy soaring desire amid supply chain difficulties and rising content charges.
Lordstown Motors Corp’s shares fell 13% soon after the corporation mentioned it necessary much more cash to put its Endurance pickup truck on the highway.
(Reporting by Nivedita Balu and Akash Sriram in Bengaluru Modifying by Krishna Chandra Eluri)