Since going public, electric automaker Rivian (RIVN) has failed to perform against various expectations in earnings results and on the stock market. That trend continues as it appears to be getting worse for the company. Following news that Ford has sold off 8 million shares in the company, Rivian’s stock value hit an all-time low in its less-than-a-year public state.
The drop of Rivian’s stock value was observed following a report from CNBC about Ford apparently closing out 8 million shares worth of investment in the company. Ford originally owned 102 million shares and this sale reduces it down to 94 million. Rivian’s stock performance has been tumbling downhill little by little since its IPO under a year ago in August 2021. However, on word that Ford had sold off 8 million shares in the company, Rivian plummeted even further. The company hit an all-time low of around $23 USD per share as of this time of writing, after coming from $28.79 a share at close of market on Friday, May 6, 2022. It started Monday at a little over $25 before drooping further.
Ford pulling a large quantity of investment in Rivian isn’t the only notable woe the company has faced recently. Amazon also pointed to Rivian as a major contributing factor in its losses for Q1 2022. Rivian’s stock value closed on its first day of public trading at a price of a little over $100 a share in August 2021 and it has decreased in value regularly since.
There are a number of factors likely contributing to the company’s poor performance. Even its well-performing competitor Tesla has admitted to facing a number of issue due to COVID-19 lockdowns and supply chain disruptions.
Nonetheless, Ford dropping 8 million shares of investment in Rivian is a big blow to the company and could mean further complications in the company’s upcoming financial reporting. Stay tuned as we continue to follow for further electric vehicle news.