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Stefan Nicola
Mon, May 9, 2022, 12:59 PM·1 min read



(Bloomberg) -- Rivian Automotive Inc. sank 17% in U.S. premarket trading after a media report that Ford Motor Co. is selling 8 million of its shares in the electric-pickup maker at a discount.
Most Read from Bloomberg.

Ford’s sale is being handled by Goldman Sachs Group Inc., CNBC’s David Faber said in a tweet.

The U.S. manufacturer owns about 12% of the electric-vehicle hopeful, or just under 102 million shares after taking a stake prior to Rivian going public last year. An insider lockup period expired Sunday after the November share sale that saw the company’s market value briefly top $100 billion making the developer more valuable at the time than Ford and General Motors Co.

Rivian shares have since plunged after its pickup launch was slower than investors expected.
JPMorgan Chase & Co. is also selling a block of 13 million to 15 million shares in the manufacturer for an unknown seller, Faber reported, citing unidentified people. Both blocks are priced at $26.90 -- a discount of 6.7% to Friday’s close.

Irvine, California-based Rivian is a high-profile, well-funded newcomer to the growing pack of EV manufacturers. The IPO was the sixth biggest in U.S. history, generating more than $13 billion to fund growth. However, Rivian has struggled to ramp production of its products at an existing plant in Normal, Illinois, due to supply-chain pressures.
(Updates stock move in first paragraph.)

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Q2 Ford's results will look balance up a lot better , smart move a healthy profit from Fords electrik division. Now use the money wisely to invest in R & D in your own future products, rather than help build up a competition company that will cannibalise your own future pick-up/van sales
 

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I know why they selling it (I am presuming they will continue to sell their entire holding) - Ford is an automotive company, not an investment firm making profit off of stocks. Ford invested in Rivian as Rivian was going to become a material contributor to Ford via supplying BEV's, which fell apart. Ford doesn't want the constant write-up's and down's as the valuation changes to make big impacts on their results as we just saw in Ford's latest quarterly earnings. But, Rivian is such a well funded company with deep pocketed backers - I feel like they should've held onto it for another year or two to see if it goes back up.

One thing to note is that the sale equates to $404 million (at 15MM shares sold), if I remember correctly, this is maybe 10% or so of their Rivian holdings.

I wonder if the unnamed buyer of the Rivian stock has the last name of "Ford"?
 

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But, Rivian is such a well funded company with deep pocketed backers - I feel like they should've held onto it for another year or two.
Yeah, unless they totally fail (unlikely) this is just selling low.
 
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Yea I checked my etrade yesterday and immediately closed it. Oh well.
 

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Yea I checked my etrade yesterday and immediately closed it. Oh well.
Look at it again next decade.
I had gold that I put in my safe deposit box and forgot about for 20 years.
Worked out ok in the end.
 

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The WSJ article I read said the Rivian factory is only running at about 10% so far........yikes.

While not the most opportune time to sell, it provides $$ for their own EV ramp up while simultaneously decreasing a "paper" loss (see their Q1 results).
 

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The WSJ article I read said the Rivian factory is only running at about 10% so far........yikes.

While not the most opportune time to sell, it provides $$ for their own EV ramp up while simultaneously decreasing a "paper" loss (see their Q1 results).
Like Musk said, making stuff is difficult. What was the name of that firm that bought GM's Ohio plant that wanted to make a pick up truck?
 

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The WSJ article I read said the Rivian factory is only running at about 10% so far........yikes.

While not the most opportune time to sell, it provides $$ for their own EV ramp up while simultaneously decreasing a "paper" loss (see their Q1 results).
What I don't get is "why sell" in general (everyone, not Ford). Sure, they are having start up problems now, but does anyone doubt that they'll figure it out? I have zero doubts that they will iron out their issues.

I assume the sellers are chasing immediate profits, not 2+ years out. But what were they really expecting? Flawless launch from a new manufacturing company and producing at capacity by now?
 

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That's a pretty tiny portion of their total share, but they may be trying to offload the stock without crashing the company. I know they want it off their books so they can stop reporting it.
 

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I know they want it off their books so they can stop reporting it.
They may want it off, but when they sell they are losing money for real.
I know the likes of Ford only care about the next quarter, but yikes.

They're also losing the opportunity to show big profits when Rivian rebounds.
 

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I have 300 shares at $49... big oof..
But I originally had 150 shares at $100 and sold at $130. That cut my overall losses. I'm keeping an eye on it. IMO Rivian is to the point where it's undervalued. I may buy another $5000. It would only need a $10-13 gain to erase my losses.
 

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It is, but reporting those massive write-ups and write-downs as the stock price swings is not good.
Well, I'm glad I'm not them. I have no pressure to sell.
 

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Look at it again next decade.
I had gold that I put in my safe deposit box and forgot about for 20 years.
Worked out ok in the end.
Yea I hear you, I don't plan on selling but I do check my accounts every day and the past week or so has been depressing. Rivian is probably down the most in my portfolio my average is 55 a share. I may consider averaging once it levels out. The only stocks that I have that are still up are Ford, VW, Shell, and a couple of ETFs. I got lucky with Ford and VW, I got Ford when it was around 10 a share and VW when it was around 17 a share. My GM has been somewhat flat to down slightly, hoping that one turns around with more EVs hitting their showrooms.
 

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I know why they selling it (I am presuming they will continue to sell their entire holding) - Ford is an automotive company, not an investment firm making profit off of stocks. Ford invested in Rivian as Rivian was going to become a material contributor to Ford via supplying BEV's, which fell apart. Ford doesn't want the constant write-up's and down's as the valuation changes to make big impacts on their results as we just saw in Ford's latest quarterly earnings. But, Rivian is such a well funded company with deep pocketed backers - I feel like they should've held onto it for another year or two to see if it goes back up.

One thing to note is that the sale equates to $404 million (at 15MM shares sold), if I remember correctly, this is maybe 10% or so of their Rivian holdings.

I wonder if the unnamed buyer of the Rivian stock has the last name of "Ford"?
Hard to say but I think your hunch that Ford will continue to sell its Rivian stock is a fair call, there’s no point in Ford keeping its investment is Rivian serves no purpose to them. The race is on now for Ford to recover its $1.2 billion investment and hopefully, a small profit for time invested…
 

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Hard to say but I think your hunch that Ford will continue to sell its Rivian stock is a fair call, there’s no point in Ford keeping its investment is Rivian serves no purpose to them. The race is on now for Ford to recover its $1.2 billion investment and hopefully, a small profit for time invested…
This was a big chunk of that, approaching $400 million!
 
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