RIVN Stock Falls as Ford Sells 7 Million More Rivian Shares

  • Ford (NYSE:F) sold another 7 million shares of Rivian
  • The automaker now owns 86.9 million shares of RIVN stock
  • Before the sales, Ford owned 102 million shares
A Rivian (RIVN) sign out front of an Illinois manufacturing plant.
Source: James Yarbrough / Shutterstock.com

Shares of Rivian (NASDAQ:RIVN) are in the red after Ford (NYSE:F) sold another 7 million shares at an average price of $26.88. The two companies compete on the electric truck front. Rivian has the R1T, and Ford’s electric truck is the F-150 Lightning.

Rivian reported Q1 earnings last week as well. The electric vehicle (EV) company maintained its 2022 production guidance of 25,000 vehicles, which pleased investors. In Q1, Rivian halved its production guidance from 50,000 vehicles.

However, revenue for the quarter came in at $95 million, missing consensus analyst estimate of $130 million. In addition, profitability remains a long way out, as earnings per share (EPS) came in at a loss of $1.43.

With that in mind, let’s get into the details of the Ford sale.

RIVN Stock Falls as Ford Sells Shares

The legacy automaker previously sold eight million shares worth $214 million last week. Before the two sales, Ford owned 102 million shares of RIVN stock, or an 11.4% stake. After the sales, Ford now owns 86.9 million shares, which is equivalent to a 9.7% stake.

Ford was able to sell its shares because Rivian’s initial public offering (IPO) lockup expiration date for early investors and insiders occurred on May 11. CNBC also reported that JPMorgan (NYSE:JPM) was planning on selling between 13 million and 15 million shares for an undisclosed seller. Investors are speculating that the seller could be Amazon (NASDAQ:AMZN), as it was an early investor. The e-commerce giant has not confirmed that, however. Amazon last reported owning 158 million shares, or an 18% stake.

George Soros Buys Call Options on Rivian

In his Q1 13F filing, famed investor George Soros disclosed that he purchased 60,450 call options on Rivian. The call options are equivalent to 6,045,000 shares if exercised. Furthermore, the fund manager also owns 19.83 million shares of common stock, which remains unchanged from Q4. These shares are worth an estimated $996 million.

Rivian remains Soros’ largest position, while RIVN call options account for his fourth-largest position. Soros also has an average holding period of 2.86 quarters, which suggests that he sees upside before the end of the year.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2022/05/rivn-stock-falls-as-ford-sells-7-million-more-rivian-shares/.

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