(Bloomberg) Shares of Rivian Automotive Inc. fell more than 17% on Monday after reports emerged that Ford was selling its 8 million shares in the company at a discount.
The reports indicated that the share sale happened after an expiry of a lockup period on Sunday. Ford bought Rivian before it went public last year and owns around 12% or just under 102 million shares.
JPMorgan was also cited as another company selling a block of its 13 million to 15 million shares in Rivian. Both blocks carry a price of $26.90 or a 6.7% discount to Rivian’s closing on Friday.
The stake sale comes when Rivian has been struggling to ramp up production of its products due to supply-chain constraints. The company’s stock has been falling since debut on a slower pickup than what investors expected.
RIVN: NASDAQ is currently down -11.11%
