When the nascent company Rivian launched on the stock market last November, we witnessed a movement of madness. The stock launched at $78 and had nearly doubled in the early hours as speculation kicked in.
It then stabilized, but since the beginning of the year, we cannot say that things are going well for the company which wishes to make its place in the world of electric vehicles. The difficulties in delivering as many models as expected, a situation made more complex by the microchip crisis and the difficulties in supplying parts, do nothing to help the fragile situation of the company.
The net result is a fall of about 70% in the value of the share since the beginning of this year. This week it continued its downward slide on news that Ford was preparing to sell some eight million of its shares in Rivian.
And the timing is no accident. It coincides with the end of the period when early investors and company insiders could not sell their shares after their acquisitions during the company’s IPO. It is in this context that the CNBC chain announced last weekend that Ford was going to get rid of eight million of its shares in Rivian. The American giant has already owned 102 million, but it had reduced its shares recently.
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Ford still has a large stake in the company, but we sense a certain hesitation through the branches. The automaker has not commented on the rumor. A spokesperson told Car and Driver magazine that Ford is not commenting on anything regarding Rivian, including the information reported by CNBC.
The news had devastating effects for Rivian, however. The stock lost some 15% to hit a low of $24. And that’s nothing; CNBC reports that JPMorgan Chase will also sell between 13 and 15 million shares. Rivian is due to release its first quarter results on Wednesday.
We will of course follow this situation closely.