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Ford, JPMorgan Chase plan to sell up to 24M Rivian shares at $26.90 per share

Written by Cláudio Afonso | | LinkedIn | Twitter

According to what sources told CNBC’s David Faber, Ford is planning to sell 8 Million Rivian shares when the insider lockup expires on Sunday representing 7.84% of its stake in the EV startup. In Q1 2022, Ford reported a net loss of $3.1 billion from its stake of 102 million Rivian shares.

The same sources said JPMorgan Chase also plans to sell “between 13 million and 15 million for an unknown seller”. The total amount will be around 21—24 million shares could represent a dump of over $645 million if considering the higher case scenario for JP Morgan Chase sell.

“The lockup defines a period of time after a company has gone public when early investors and company insiders cannot sell their shares. That ensures the IPO is carried out in an orderly manner and does not flood the market with additional shares,” CNBC explains.

The share price of the electric truck maker Rivian Automotive hit on Friday, a new all-time low at $28.71. Earlier this month, the company announced a $1.5 billion state and local incentive package for its second factory planned for Georgia. On Dec. 3, 2021, The Financial Times reported that the UK was offering Rivian $1.32 billion to build a plant in Somerset.

Rivian announced on April 5 that produced a total of 2,553 vehicles in Q1 2022 at its manufacturing facility in Normal, Illinois. The EV maker delivered 1,227 vehicles during the same period being in line with the company’s expectations for the year. Rivian believes it is “well positioned to deliver on the 25,000 annual production guidance provided during its Q4 earnings call on March 10, 2022”. 

Rivian had its IPO on November 10, 2021, raising nearly $13 Billion with a price of $78.00 per share. By then, Rivian and Lucid stocks were among the favorites for short-squeeze traders leading Rivian shares to their All-Time-High at $179.47 after the first week of trading. Rivian shares are now trading around $32.50, 82% down from their recent highs.

The company will report its financial results on May 11, 2022, after market close. Rivian will host an audio webcast to discuss its results and provide a business update at 2:00pm PT / 5:00pm ET the same day.

Recently, Deutsche Bank analyst Emmanuel Rosner maintained the firm’s Buy rating on Rivian Automotive lowering the price target from $91 to $90. Three months after initiating coverage on the company shares, the analyst had decreased the firm’s price target from $130 to $91. Based on the last closing price, Deutsche Bank’s new price target implies an upside potential of 167%.

Written by Cláudio Afonso | | LinkedIn | Twitter