Ford expected to sell part of Rivian stake as IPO Lockup ends on Monday

Rivian has had a bit of a tough stretch. However, yet another big news day is coming on Monday.

The automaker’s initial public offering (IPO) lockup ends on Monday May 9, allowing early investors to sell stock. As per reporting by Barron’s, around 800 million shares are affected by this lockup.

Most investors will be looking at Ford and Amazon to see what they do with their 102 million and almost 160 million stocks respectively.

According to CNBC‘s sources, Ford is expected to sell 8% (about 8 million shares) of their Rivian stake on Monday after reporting a $5.4 billion loss on their investment in their Q1 2022 earnings report.

Another 13 million to 15 million shares are reportedly planned to be sold by JP Morgan Chase for an unknown seller.

There have been no reports on what Amazon may or may not do.

Although many are concerned that Rivian’s stock will fall even further with the end of the lockout, historically, this does not happen.

Meta, for instance, saw a 40 per cent increase in its stock price after its lockout ended. While Uber also saw a slight increase of 2 per cent after its lockout ended.

Rivian’s IPO was $78 per share and peaked at $180. However, with a couple of speed bumps, including production issues, Rivian’s stock price is down to $30.24.

As expected, quite a few short-sellers are betting on Rivian’s price to decline. According to estimates, around 6 per cent of Rivian’s total shares outstanding have been borrowed and sold by short-sellers.

Rivian will have their Q1 2022 call on May 11 and depending on the results could help the stock even more.

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