Ford has sold another 7 million Rivian shares worth $188.42 million. This comes just days after the Blue Oval sold $214 million worth of stock, meaning the automaker has offloaded over $400 million in Rivian shares in the past week.
Rivian went public last November, with reservation holders allowed to purchase stock early for a fixed price of $78 a share. Despite a sharp rise to over $170, the stock fell drastically throughout the festive period and new year. The stock continued to fall at a significant rate in February and March. As of Friday, RIVN trades at $26.70 – down more than 70% since day 1.
Rivian is continuing to have supply chain issues, with the firm drastically cutting down on its production target for 2022. Analysts initially expected Rivian to produce around 40,000 vehicles this year but back in March the automaker stated it now only has a 25,000 unit target. However, even reaching that could prove a challenge – Rivian only made 2,553 vehicles in Q1. The firm also lost $1.59 billion in the first quarter of this year.
Ford and Amazon are the two major stakeholders in Rivian. Several other firms also have significant stakes, such as Cox Automotive. Ford initially aimed to use Rivian’s skeleton platform for an electric Lincoln SUV, however plans for that have since been shelved. Ford has suffered a $5.4 billion mark-to-market loss on its Rivian investment, with the startup being largely responsible for Ford’s underwhelming financial results in the last quarter.