Production of Rivian R1T electric trucks on April 11, 2022 at the company’s plant in Normal, Illinois.
Michael Wayland / CNBC
Actions of rivian automotive slumped in premarket trading Monday following a CNBC report that Ford Motor plans to sell 8 million shares of starting the electric vehicle.
Rivian shares fell 19% in extended trading to less than $24 a share, poised to add significant losses for the year. Shares of the automaker closed below $30 on Friday for the first time since the company went public through its successful initial public offering in November. The stock is down 72% this year.
A stock lock-up period for company members and early investors, such as Ford expired on Sunday.
CNBC’s David Faber reported Saturday that Ford would sell 8 million of its Rivian shares through Goldman Sachs. The Detroit automaker currently owns 102 million Rivian shares. A Ford spokesman declined to comment Monday morning.
JPMorgan Chase also plans to sell a $13 million to $15 million block of Rivian shares to an unknown seller, people familiar with the plans told Faber. Both blocks of shares are priced at $26.90 per share.
Rivian said in March. expected to produce 25,000 electric trucks and SUVs this year, as the startup battles supply chain constraints and in-house production drawbacks. That would be just half the vehicle production it forecast to investors last year as part of its IPO tour.
The company reports its first-quarter results after the market close on Wednesday.