It looks like Ford (F) wants to cut some of its losses with Rivian (RIVN). According to sources, the legacy automaker plans to unload 8 million shares of the previously high-flying electric truck maker after the expiration of its insider lockup for the stock expired on Sunday.
Ford currently owns 102 million shares of Rivian, which have been under insider lockup since the company’s IPO late last year. The lockup is designed to prevent early investors and company insiders from selling newly-listed shares of a company for a period of time after its IPO.
JPMorgan Chase (JPM) is also planning to sell between 13 million and 15 million of its Rivian shares to an unknown buyer at a price of $26.90 per share.
Why it matters
Ford declined to comment on why it's selling a portion of its Rivian stock, but it likely has to do with the company's supply chain and production issues. Rivian expects to produce just 25,000 electric trucks and SUVs this year, which is half of what it forecasted to investors last year leading up to its IPO.
