Shares of Revian Automotive Inc. opened at a record low of 14% on Monday, following a report that the initial investor would sell a portion of its stake in the Ford electric-car maker.
Shares of Rivian traded at .7 24.77, well above their record of $ 179.50 in November last year.
Ford is selling 8 million shares of its Rivian stock as the stock lockup expires on Sunday, CNBC reported over the weekend, citing sources. Ford was the fourth largest shareholder in the Rivian, with 11.4% of the shares, according to reflective data.
Rivian is battling a supply chain crisis that has limited its production, just as it did at the Normal factory in Illinois. The company has already halved its planned 2022 production to 25,000 vehicles due to supply chain problems.
The Irvine, California-based company lost nearly three-quarters of its value this year, while delivering just 1,227 cars in the first quarter.
Amazon.com Inc., Rivian’s second-largest shareholder with a 17.7% stake, recorded a 59% drop in operating income in its first quarter, due to losses in investments in carmakers. Amazon is one of the main customers of Rivian and expects to get 100,000 delivery vans by 2024.
JPMorgan Chase plans to sell a িয়ান 13 million to 15 15 million block of Rivian shares from an unknown vendor, CNBC reports, with a share price of োর্ 26.90, similar to Ford’s.
Companies were not immediately available for comment.
Shares of other new electric-car makers have also declined as investors worry that these start-ups may not be able to produce enough electric vehicles to meet growing demand amid supply chain problems and rising material costs.
Shares of Lordstown Motors Corporation fell 13% when the company said it needed more funding to keep its endurance pickup truck on the road.
(Reporting by Nivedita Balu and Akash Sriram in Bangalore; Edited by Krishna Chandra Iluri)