Rivian stock

A lock-up period last six months after a company goes public, preventing insiders and early investors from selling their shares.

But supply chain disruptions have led Rivian to delay some of its deliveries and raise prices on its flagship car by more than $10,000. Both Ford and Amazon revealed billion-dollar losses related to their Rivian stakes in their most recent earnings calls. Rivian stock fell 19% to $23.32 in Monday trades.

Rivian's stock plunged 13% Monday as early investors jumped at their first opportunity to sell their shares — including, reportedly, Ford.

Investors also could be nervous about Rivian's first quarter financial results, due out after the market close Wednesday. Shares fell 10% the day after it reported its first financial results is an important partner for Amazon, and we are excited about the future," said an Amazon spokesperson. The company's stock is down 84% from its post-IPO high through Friday's close.

Rivian R1T pickup truck. Image source: Rivian Automotive. With these warnings coming barely weeks ahead of Rivian's earnings release, investors were spooked, ...

These are massive blocks of stocks, and dumping shares at such a large scale is bound to create heavy selling pressure on Rivian -- like the pressure we're seeing this morning. CNBC reported this past weekend that Ford plans to sell 8 million shares in Rivian once the IPO lockup period expires. Scaringe even called that shortage "a small appetizer" to what could happen with battery cells over the next couple of decades. But here's the thing: Ford owned roughly 102 million shares in Rivian and Amazon nearly 160 million as of last count. Then in April, The Wall Street Journal reported that Rivian CEO RJ Scaringe believes a shortage in battery supply will be an even bigger threat to the auto industry than the chip shortage that's been going on for nearly two years now. In between, two of Rivian's largest shareholders, Ford ( F -4.08%) and Amazon ( AMZN -3.31%), reported massive losses on account of a dramatic drop in the value of their investments in Rivian in the first quarter.

A CNBC report over the weekend said that Ford would be selling eight million of its stock in EV startup Rivian, causing Rivian's stock price to tumble.

A stock lockup period—a length of time after an IPO when early investors and company insiders are prevented from selling their shares—expired on Sunday, and on Saturday CNBC reported that Ford would be shedding eight million Rivian shares. CNBC reports that JPMorgan Chase will also be selling between 13 and 15 million shares for an unknown seller. Now it has plummeted even further after a report from CNBC that Ford is selling eight million of its shares in Rivian.

The lockup on insider shares following Rivian's IPO in November is over. Ford might be selling about 8% of its stake in the EV startup.

Ford is a big part of the problem for Rivian... Everything is lower, including shares of early Rivian (ticker: RIVN) investors Ford (F) and Amazon.com (AMZN). Shares of the electric-truck startup Rivian Automotive were falling Monday. Ford Motor is the main reason, but there is something else troubling investors.

Rivian's stock price fell more than 17% Monday, a drop prompted by a CNBC report that Ford was selling 8 million shares of the EV automaker.

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EV companies are seeing strong demand for EVs, significant ongoing supply-chain challenges and high rates of cash burn.

With Rivian's stock down roughly 90% from its high in 2020, the company has had to cut deals with private funds to raise cash on less-than-favorable terms. Unless its stock price surges, it may be hard to pull off a multibillion-dollar raise without diluting existing shareholders significantly. In February, Lucid cut its full-year production guidance from 20,000 vehicles to between 12,000 and 14,000. More recently, the Russian invasion of Ukraine has led to shortages of certain components and a surge in prices for key commodities. As for Fisker, it now has over 40,000 reservations for its stylish Ocean SUV, set to launch late this year. The electric truck maker may also face questions about whether its largest investors — Amazon and Ford Motor — are losing confidence in the company.

The lockup on insider shares following Rivian's IPO in November is over. Ford might be selling about 8% of its stake in the EV startup.

Ford is a big part of the problem for Rivian... Everything is lower, including shares of early Rivian (ticker: RIVN) investors Ford (F) and Amazon.com (AMZN). Shares of the electric-truck startup Rivian Automotive were falling Monday. Ford Motor is the main reason, but there is something else troubling investors.

The electric vehicle startup's shares have tanked nearly 80% so far this year.

Analysts at CFRA maintained a “hold” rating on Rivian stock Monday, despite the recent struggles. The weaker-than-expected forecast spooked investors, with Rivian predicting it would produce just 25,000 electric pickups and SUVs this year. Rivian’s stock has continued to hit new lows in recent months, especially as investors turn away from speculative growth and technology stocks amid the wider market sell-off.

Rivian shares already collapsed 82% from their November high through Friday.

Of course, Rivian isn’t the only IPO from last year that has faltered. Abdul Latif Jameel, a Saudi Arabia-based group and an investor in Rivian, said it has no plans to sell shares. It went public amid great fanfare as investors thirsted for EV companies with a growing push from governments and policy makers around the world to move toward clean transportation options. In addition, supply-chain shortages and soaring raw material costs have crippled new EV companies, forcing them to lower production targets and making their valuations look even more expensive. Gianarikas said he does not expect the e-commerce giant to reduce its stake, pointing to its order of 100,000 Rivian electric delivery vehicles. Rivian was the largest U.S. IPO of 2021.