Why Rivian Stock Is Crashing Ahead of Earnings Today
Rivian Automotive (NASDAQ: RIVN) stock crashed yet again today, tumbling 7.5% by noon. It's evident the market is increasingly worried about what the electric vehicle (EV) manufacturer may have to say later today when it releases its first-quarter numbers even as a large shareholder just confirmed having dumped a big block of Rivian shares.
Rivian stock has been in a free fall this week ever since CNBC reported this past weekend that Ford (NYSE: F) was planning to sell 8 million shares in the EV soon after the expiry of the 180-day initial public offering lock-up period that prevents early investors from selling stake in a company.
Ford's regulatory filing on May 10 confirmed the the legacy automaker had indeed dumped 8 million shares in Rivian at a price of $26.80 per share the previous day. Ford suffered a huge loss in its first quarter as the value of its investment in Rivian eroded thanks to a free fall in the latter's stock price, and many expected Ford to offload its stake to prevent future losses.
Source Fool.com