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Ford begins to retreat, and "Tesla Killer" Rivian falls out of favor?

Compared with last year's high voices, Rivian, an American electric vehicle company known as the "Tesla killer", seems to be in a mess this year.

Ford begins to retreat, and "Tesla Killer" Rivian falls out of favor?

A few days ago, according to foreign media reports, as the lock-up period for The stakes after the Listing of Rivian is about to expire, Ford Islamic is expected to sell some of Theivian's shares.

Generally speaking, the shareholding lock-up period refers to the period after the company is listed, and the early investors of the company cannot transfer their shares within a certain period of time, in order to ensure that the IPO is carried out in an orderly manner.

Ford was eager to sell Itsivian stock before the lock-up period, largely due to a sharp contraction in its Rivian stake in the first quarter, costing Ford $5.4 billion. According to Ford's first quarter 2022 earnings report, Ford Motor vehicles had revenue of $34.5 billion and adjusted EBITDA of $2.3 billion, but the sharp decline in Rivian's stock price led to an overall net loss of $3.1 billion for the quarter.

Ford begins to retreat, and "Tesla Killer" Rivian falls out of favor?

As a competitor to Tesla, Rivian owns two models, the electric pickup R1T and the SUV model R1S.

On November 10, 2021, Rivian went public at $78 per share, making it facebook's largest IPO in the U.S. since Facebook in 2012. Just three days after going public, it was valued at more than $120 billion. Since then, the stock price has risen to $179.47, and the market value has soared to $152 billion, surpassing giants such as Ford and BMW.

Ford motor, it has also benefited from holding Rivian shares. In the fourth quarter of last year, Ford earned $8.2 billion from holding Rivian stock. However, Rivian began to go high and low after entering 2022.

Ford begins to retreat, and "Tesla Killer" Rivian falls out of favor?

According to Rivian's official financial report, for the full year of 2021, it produced 1,015 cars and delivered 920 vehicles; it lost $4.7 billion in fiscal 2021. While the results were less than expected, Rivian also expected to halve planned production in 2022 from the original forecast of 50,000 units to 25,000 units due to supply chain constraints.

In addition, in March this year, Rivian announced an increase in the price of two of its models, the R1T and R1S, which caused dissatisfaction among many pre-order users. Some shareholders even filed a lawsuit against Rivian, arguing that Rivian's price increase would damage Rivian's reputation as a trustworthy and transparent company.

The impact of a number of events, such as large losses in performance, expected production cuts, and price increases, prompted Rivian's stock price to fall sharply.

As of the close of trading on May 6, 2022, Rivian shares had fallen to $28.79 per share, down 84% from their post-listing high, and its market capitalization had also fallen to $25.929 billion.

At present, Ford Motor co-holds a total of about 102 million shares of Rivian, accounting for 11.42% of the total share ratio of Rivian, and this time Ford will sell 8 million of them and conduct this transaction through Goldman Sachs.

In addition to Ford, JPMorgan Chase will also sell between 13 million shares and 15 million Shares of Rivian stock for an anonymous seller. Both tranches of stock will be sold at $26.90 per share, down from last Friday's share price.

At a selling price of $26.9 per share, Friday's $28.79 per share was still not the lowest level in Rivian's stock price, which may have also led to a retreat from Ford and other shareholders' investment in Rivian.

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