Why Rivian Automotive Stock Crashed Monday
Rivian Automotive (NASDAQ: RIVN) stock has been falling all year, entering this week down more than 70% year to date. Some of the recent drop may have been in anticipation of the expiration of the lockup period that occurred this weekend. After the electric vehicle (EV) maker's initial public offering (IPO) on Nov. 10, 2021, early investors were required to hold onto shares for a period of 180 days. But Rivian shares tumbled today on the first trading day after that expiration, down 16.6% as of 10:58 a.m. ET.
It wasn't just the lockup expiration that has investors selling this morning, though. Over the weekend, CNBC's David Faber reported that Ford will be selling some of its stake in Rivian. Ford was an early investor in Rivian, holding 102 million shares, or about 11%, in the company. Faber reported that Ford has lined up a sale of 8 million on those shares.
Image source: Rivian Automotive.
Source Fool.com
