Ford Motor sold 8 million Rivian Automotive (NASDAQ: $RIVN) shares after the initial public offering lockup expired on Monday.
The traditional automaker was an early investor in the electric-vehicle maker.
What Ford will do with the remainder of its stake isn’t known. “We sold 8 million shares, representing just under 8% of our investment in Rivian,” said a Ford spokesman in an emailed statement when asked about the remaining 94 million shares. “We think it’s prudent at this point to monetize a small portion of the investment.”
That might indicate Ford plans to keep the rest of its stock for a while.
Amazon.com (NASDAQ: $AMZN) also was another early investor in Rivian and owns about 160 million shares. An Amazon spokeswoman told Barron’s Monday: “Rivian is an important partner for Amazon, and we are excited about the future. Putting 100,000 electric delivery vehicles on the road by 2030 is no small feat, and we remain committed to working with Rivian to make it a reality.”
Amazon has ordered 100,000 delivery vehicles from Rivian.
Rivian shares were rising 0.4% in premarket trading Wednesday to $22.90. The stock dropped almost 21% on Monday amid the IPO lockup expiration and Ford’s actual stock sales. Shares finished flat in mixed Tuesday trading, rising 1 cent to $22.79. The S&P 500 rose 0.3%. The Dow Jones Industrial Average fell 0.3%.
Rivian shares have been badly beaten up in recent weeks. The broader selloff in richly valued growth stocks has hurt, but the IPO lockup also was an overhang. Rivian stock fell 26% in the month leading into the lockup expiration. The Nasdaq Composite fell about 11% over the same span.
Amazon and Ford stakes will continue to be a watch-item for investors. But eventually the impact of the IPO lockup expiration should fade and investors will turn their attention back to Rivian’s business fundamentals.
Rivian reports earnings Wednesday after the close of trading. Investors will be eager to hear about how Rivian’s production ramp-up is proceeding.