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May 9, 2022 9:46 AM, EDT

Rivian Tumbles After Report of Ford Share Sale at a Discount

RivianRivian R1T electric vehicle pickup trucks on the assembly line. (Jamie Kelter Davis/Bloomberg News)

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Rivian Automotive Inc. sank 21% after a media report that Ford Motor Co. is selling 8 million of its shares in the electric-pickup maker at a discount.

Ford’s sale is being handled by Goldman Sachs Group Inc., CNBC’s David Faber said in a tweet.

The U.S. manufacturer owns about 12% of the electric vehicle hopeful, or just under 102 million shares after taking a stake prior to Rivian going public last year. An insider lockup period expired May 8 after the November share sale that saw the company’s market value briefly top $100 billion, making the developer more valuable at the time than Ford and General Motors Co.

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Rivian shares have since plunged after its pickup launch was slower than investors expected.

JPMorgan Chase & Co. is also selling a block of 13 million to 15 million shares in the manufacturer for an unknown seller, Faber reported, citing unidentified people. Both blocks are priced at $26.90 — a discount of 6.7% to the May 6 close.

Irvine, Calif.-based Rivian is a high-profile, well-funded newcomer to the growing pack of EV manufacturers. The IPO was the sixth biggest in U.S. history, generating more than $13 billion to fund growth. However, Rivian has struggled to ramp production of its products at an existing plant in Normal, Ill., due to supply chain pressures.

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