Sources say Ford is selling 8 million shares of Rivian.
Production of Rivian R1T electric pickups on April 11, 2022 at the company’s plant in Normal, Illinois.
Ford Motor is selling 8 million of its shares in Rivian Automotive, with an insider lock on the once-popular electric car maker’s stock expiring on Sunday, sources told CNBC’s David Faber.
The automaker currently owns 102 million shares of Rivian. Ford will sell shares through Goldman Sachs, the sources said.
A lockup defines a period of time after a company has gone public when early investors and company insiders cannot sell their shares. This ensures that the IPO proceeds in an orderly manner and does not flood the market with additional shares.
Ford declined to comment when contacted by CNBC.
Sources told Faber that JPMorgan Chase also plans to sell a $13 million to $15 million stake in Rivian to an unknown seller. Both blocks of shares are valued at $26.90 per share.
Shares in the electric car maker have fallen more than 50% in the first three months of 2022, reversing course from the fourth quarter when the company debuted on the stock market and its value skyrocketed.
In March, Rivian said it expects to produce 25,000 electric trucks and SUVs this year as the startup struggles with supply chain constraints and internal manufacturing issues. That would be only half of the car production that the company projected to investors last year as part of its IPO roadshow.
— Michael Weiland and Ari Levy of CNBC contributed to this report.