Shares in electric truck brand Rivian have fallen a long way since their all-time high, but there’s even more bad news on the horizon for investors as shares drop 17% amid rumors of a Ford selloff.
Ford reportedly owns 102 million shares of the American truckmaker, which also counts Amazon among its big-name backers. News that Ford would be selling off at least 8 million shares emerged earlier today on various news sources, sending shares plummetting after what, to many, seems like a vote of no confidence in the fledgling truck brand.
Now that Ford has canceled plans to build an electric Lincoln SUV in partnership with Rivian, it’s hard to take the news of a stock sale as anything but.
Shares were already down more than 80% from all-time-high, and the latest drop won’t help Rivian regain the public’s trust in the brand– which was unquestionably damaged after Rivian raised prices on early reservation holders before reversing that decision in the face of a customer outcry.
Ford recently blamed a $3.1 billion loss on its balance sheet on Rivian’s poor share performance. It remains to be seen how low the company’s stock can go as the IPO whales begin to sell.
SOURCE | IMAGES: MSNBC, VIA BLOOMBERG.