Ford unloads Rivian, which for now holds on the stock market, albeit at a minimum
After selling 8 million shares at $ 26.80 on Monday in a move that would have led Rivian shares to open last week's trading down, Ford would sell another 7 million shares for $ 26.88 on Friday.
This brought Ford's total shares sold to over $ 400 million, according to Bloomberg. It also cuts the automaker's stake in Rivian to nearly 87 million shares. The sales come after a ban on selling went off last week.
Ford had initially invested $ 1.2 billion in Rivian and has seen the value of its investment rise since Rivian's public market debut. But since then, its stock has plummeted from highs near $ 172 to a low of $ 19.25 last week.
Ford called the sale of the shares "prudent," Bloomberg said. A Rivian spokesperson told Bloomberg: “ It is not unusual to see investors seize an opportunity like this following a successful IPO. We remain focused on realizing our vision to create a more sustainable future powered by electric vehicles and create long-term value for all our current and future shareholders ”. Collecting profits could make sense with the values at 150, certainly not at $ 20-25. However, the stock has not plummeted and is held at around $ 25.
Rivian's IPO was memorable and emblematic of the green age tech craze, full of promise, but poor in profits. It was the sixth largest IPO in U.S. history, generating more than $ 13 billion to fund the growth of the electric vehicle maker.Unfortunately, production of its products at its Normal, Illinois facility lagged behind. due to pressure on the supply chain. Around 2,500 cars were delivered in the first quarter.
In March, the company said it plans to produce 25,000 electric trucks and SUVs this year as the start-up has battled supply chain constraints and obstacles to in-house production. That would only be half of the vehicle production planned for investors last year as part of its IPO roadshow.
Late last month, Amazon and Ford revealed they had lost a total of $ 12.3 billion on their investments in Rivian. Not really bad as a loss …
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The article Ford unloads Rivian, which for now holds on the stock exchange, even if at the lowest it comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/ford-scarica-rivian-che-per-ora-regge-in-borsa-anche-se-ai-minimi/ on Mon, 16 May 2022 14:52:25 +0000.