[BlackGTP]

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"?

 

[BlackGTP]

Yea I checked my etrade yesterday and immediately closed it. Oh well.

I don't look in a down market - to painful.

 

[BlackGTP]

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?

 

[BlackGTP]

Yeah, unless they totally fail (unlikely) this is just selling low.

It is, but reporting those massive write-ups and write-downs as the stock price swings is not good.

 

[BlackGTP]

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!