Ford Motor Co. sold eight million shares of electric-car maker Rivian Automotive Inc. for $ 214 million, or $ 26.80 per piece, the U.S. automaker said in a filing Tuesday.
Ford now owns about 94 million shares, or 10.5%, and is still the fourth largest shareholder in California-based company Irwin, according to refinitive data.
Rivian is battling a competitive market, including competition for Ford’s F-150 Lightning electric pickup truck, while a supply chain crisis is limiting production at its plant.
The electric-car maker has previously halved its planned 2022 production to 25,000 vehicles.
May 9 Ford’s মূল্য 26.8 per share sell-off was lower than Friday’s িয় 28.79 on the Rivian.
Rivian shares have fallen nearly 21% since CNBC reported sales over the weekend.
T.Rowe Price Associates is the largest shareholder in electric car makers with 18.2% stake, followed by Amazon.com Inc with 17.7%.
Amazon.com posted a 59% slump in its first-quarter operating income, largely due to its investment in carmakers.
The US retail giant, one of Revian’s main customers, expects to have 100,000 delivery vans by 2024.
A markdown on Ford’s share price in Rivian led to a net loss of $ 3.1 billion in its first quarter.
Rivian and Ford did not immediately respond to requests for comment.
(Reporting by Jahnavi Nidumolu and Tanvi Mehta in Bangalore; Editing by Sherry Jacob-Phillips)