Rivian Shares Plummet After Ford Dumps 8 Million Shares
Courtesy of Rivian

Rivian Shares Plummet After Ford Dumps 8 Million Shares

Rivian shares continued their downward slide Monday after stockholder Ford Motor Company announced that it is dumping 8 million shares in the Irvine-based electric truckmaker.


Over the weekend, it emerged that the Detroit auto giant plans to reduce its position in Rivian, which totaled 102 million shares, after it was released from a six-month lockup period in the wake of Rivian’s November initial public offering.

In turn, Rivian’s stock started the week’s trading by continuing its months-long decline, shedding another 21% on Monday and retreating ever further from the autumn highs that briefly made it one of the world’s most valuable automakers. The company’s shares closed at $22.78, on a day when the tech-heavy Nasdaq exchange it trades on fell 4.3% amid an ongoing stock market selloff.

To be clear, Ford’s retreat doesn’t mean it is bailing on its Rivian investment entirely; the Detroit automaker still owns 94 million shares in Rivian and, alongside Amazon, remains one of the largest investors in the electric truck and SUV manufacturer. But it does see a major Rivian backer limiting its exposure to the stock in the face of production setbacks and vehicle price hikes brought about by rising costs and supply chain woes.

Despite those setbacks, Rivian announced last week that it had secured $1.5 million in tax incentives to begin construction on a new auto plant in Georgia that is expected to add 400,000 vehicles to its annual production capacity. If the company can achieve anywhere close to that level of production in the next five years, Rivian could finally prove a real rival to Tesla and other EV competitors.

Rivian is set to release its first-quarter earnings report on Wednesday. Should the company’s performance meet or exceed expectations, it could help stem its stock’s downward momentum and calm the nerves of jittery investors; if not, Ford’s decision could be a harbinger of things to come.

LA Tech Updates: Apple Podcast Vet Joins QCODE, Amazon Reportedly in Talks to Buy Wondery, Pharrell's New Black Ambition Incubator

Here are the latest updates on news affecting Los Angeles' startup and tech communities. Sign up for our newsletter and follow dot.LA on Twitter for more.

Today:

  • Apple Podcast Veteran Steve Wilson Joins Startup QCODE
  • Amazon in Exclusive Talks to Buy Podcast Studio Wondery, Wall Street Journal Reports
  • Pharrell Launches Black Ambition Incubator
Read moreShow less
LA Tech ‘Moves’: MeWe Taps Apple Co-founder, Aspiration Swipes Tesla Director
Photo by James Opas | Modified by Joshua Letona

“Moves,” our roundup of job changes in L.A. tech, is presented by Interchange.LA, dot.LA's recruiting and career platform connecting Southern California's most exciting companies with top tech talent. Create a free Interchange.LA profile here—and if you're looking for ways to supercharge your recruiting efforts, find out more about Interchange.LA's white-glove recruiting service by emailing Sharmineh O’Farrill Lewis (sharmineh@dot.la). Please send job changes and personnel moves to moves@dot.la.

Read moreShow less
Decerry Donato

Decerry Donato is a reporter at dot.LA. Prior to that, she was an editorial fellow at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.

RELATEDTRENDING
LA TECH JOBS
interchangeLA