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Ford is selling 8 million Rivian shares, sources say

Production of electrical Rivian R1T pickup vans on April 11, 2022 on the company’s plant in Normal, Ill.

Michael Wayland / CNBC

Ford Motor is selling 8 million of its Rivian Automotive shares, with the insider lockup for the stock of the as soon as high-flying electrical automobile maker is set to run out on Sunday, sources informed CNBC’s David Faber.

The automaker presently owns 102 million shares of Rivian. Ford might be selling the shares via Goldman Sachs, sources mentioned.

The lockup defines a time period after a company has gone public when early buyers and company insiders can’t promote their shares. That ensures the IPO is carried out in an orderly method and doesn’t flood the market with extra shares.

Ford declined to remark, when contacted by CNBC.

JPMorgan Chase additionally plans to promote a Rivian share block of between 13 million and 15 million for an unknown vendor, sources informed Faber. Both blocks of shares are priced at $26.90 a share.

Shares of the EV producer have plummeted by greater than 50% within the first three months of 2022, reversing course from the fourth quarter, when the company held its stock market debut and noticed its worth skyrocket.

Rivian mentioned in March it anticipated to provide 25,000 electrical vans and SUVs this year, because the start-up battles via provide chain constraints and inner manufacturing snags. That could be simply half of the automobile manufacturing it forecast to buyers final year as a part of its IPO roadshow.

— CNBC’s Michael Wayland and Ari Levy contributed to this report.

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