Ford sold $214 million worth shares earlier this week. On Saturday it was reported that additional $188.2 million shares. The fillings with SEC revealed on Friday showed that Ford sold its investment in Rivian of around 7 million worth shares. The offloading of its shares comes as it was struggling to gain momentum.
Rivian has been struggling recently as there are supply chain constraints and other production facilities shutdowns. In both revenue and earnings per share a miss was reported on its earnings this week. It stated that the struggle with supply chain and other external conditions. Automakers globally have been struggling with the shortage.
Ford stated in its Q1 earnings report, saying it also suffered significant losses due to its investment in Rivian. Amazon is another well known company who backed Rivian initially last year even before the IPO was announced. Amazon also reported substantial drops with its investment in Rivian.
Last year as Rivian’s IPO was done, the stock surged upt $179.47, an all-time high. But the market began to adjust and the stock stumbled later. More than 73 percent of its values was lost since the ATH trading levels. As of Saturday its share value was at $26.70 after closing at 10 percent on Friday. The price drops have attributed delays in production and other shipping forecasts as well. The automotive parts shortage and the ability to deliver the electric pickup R1T have been altered. This year the automaker built 25,000 vehicles, sharp decrease compared to the initial planned production.
Ford described the leadoff as “prudent” however it didn’t mention about its investments in future. Ford on the other hand has been focused on F-150 Lightning. Talking about the company’s investment in Rivian executive officer Jim Farley said “everything is on the table”.
Ford had invested around $1.2 billion in Rivian and as the IPO was out there was a surge in the prices last year. However the variation has been such that it went as high as $172 in November last year, and recently touched as low as $19.25. “It’s not unusual to see investors take an opportunity like this after a successful IPO,” a spokesperson from Rivian said in a statement. “We remain focused on delivering on our vision to create a more sustainable future powered by EVs, and building long-term value for all of our current and future shareholders.”
It is known that JPMorgan Chase also plans to sell Rivian investment. Around 13 million to 15 million worth shares are expected to be sold off from its investment in the automaker.