"Called the 'Tesla Challenger'... Ford and JP Morgan Cut Losses Amid Rivian Stock Plunge"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] On the 8th (local time), CNBC reported that Ford Motor Company and JP Morgan are planning to sell shares of Rivian, an electric vehicle manufacturer once considered a rival to Tesla. The lock-up period ends on the 9th, and they intend to sell the shares on the market immediately.

According to CNBC, citing well-informed sources, Ford plans to dispose of 8 million Rivian shares, while JP Morgan plans to sell between 13 million and 15 million shares. Currently, Ford holds 102 million shares of Rivian.

This year, Rivian's stock price has been plummeting daily amid a sell-off of tech stocks on Wall Street. On the 6th, Rivian's stock closed at $28.79 per share. After soaring to $172 shortly after its IPO in November last year, the stock price continued to decline, dropping more than 70% just this year.

As the stock price has crashed, impacting performance, it appears they have started selling shares one after another. In particular, Ford had sought a joint electric vehicle production venture with Rivian and made large-scale investments, but as this plan fell through, it is interpreted that they are disposing of shares in line with the end of the lock-up period.

Additionally, Amazon, the world's largest e-commerce company, is also likely to sell its Rivian shares. Amazon reported a $7.6 billion loss in the first quarter (January to March) due to its investment in Rivian. Amazon had made large-scale investments in Rivian as it aimed to convert all its delivery trucks to electric vehicles.

This content was produced with the assistance of AI translation services.