May 09, 2022 (Baystreet.ca via COMTEX) -- Shares of Rivian Automotive /zigman2/quotes/230726939/composite RIVN -2.67% plummeted in premarket trading Monday following a report that Ford Motor /zigman2/quotes/208911460/composite F -2.46% plans to sell eight million shares of the electric vehicle start-up.
Rivian's stock was down $3.94, or 13.7% in early trading on Monday to $24.85 a share, poised to add to significant losses for the year. Shares of the automaker closed Friday below $30 for the first time since the company went public through its blockbuster IPO in November. The stock has fallen 72% this year.
A stock lockup period for company insiders and early investors such as Ford expired Sunday.
Media reports circulated Saturday that Ford would sell eight million of its Rivian shares through Goldman Sachs. The Detroit automaker currently owns 102 million shares of Rivian. A Ford spokesman declined to comment Monday morning.
One media outlet called the sale "done," saying shares are already being distributed.
JPMorgan Chase also plans to sell a Rivian share block of between 13 million and 15 million for an unknown seller, people familiar with the plans told Faber. Both blocks of stocks are priced at $26.90 a share.
Rivian said in March it expected to produce 25,000 electric trucks and SUVs this year, as the start-up battles through supply chain constraints and internal production snags. That would be just half of the vehicle production it forecast to investors last year as part of its IPO roadshow.
The company is scheduled to report its first-quarter results after market close Wednesday.
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