Ford to sell 8M Rivian shares after $3.1B net loss

Credit: Mike Levine

Ford plans to sell 8 million of its Rivian shares. The lockup period for Rivian’s IPO will expire on Sunday, May 8. The lockup period refers to when early investors cannot sell their shares after a company’s IPO.

Sources told CNBC‘s David Faber that Ford will sell its Rivian shares through Goldman Sachs. JPMorgan Chase will also sell Rivian share blocks between 13 million and 15 million for an unknown seller, priced at $26.80 per share.

Last month, Ford reported a net loss of $3.1 billion attributed to its Rivian investment. Shortly after Ford, Amazon reported a loss of $7.6 billion on its Rivian investment. 

In March, Rivian noted in a SEC filing that it expects to see “continuing losses” for the foreseeable future. “We have incurred net losses since our inception, including net losses of $0.4 billion, $1.0 billion, and $4.7 billion for the years ended December 31, 2019, 2020, and 2021, respectively,” reported Rivian in the filing. 

“We believe that we will continue to incur operating and net losses in the future while we grow, including following our initial generation of revenues from the sale of our vehicles, which began with the R1T in September 2021 and the R1S and EDV in December 2021. We do not expect to be profitable for the foreseeable future as we invest in our business, build capacity, and ramp up operations, and we cannot assure you that we will ever achieve or be able to maintain profitability in the future,” Rivian noted. 

The EV manufacturer also stated that the ongoing Russian invasion of Ukraine has impacted its business and operations. It admitted to experiencing cost increases and disruptions in the supply of raw materials and other components used in vehicle production. 

Many automakers, including Tesla and Lucid, have openly talked about supply chain challenges and rising costs of raw materials. The increasing costs of raw materials, logistics, and other components have increased vehicle prices. 

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Ford to sell 8M Rivian shares after $3.1B net loss
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