Rivian is struggling in a competitive market, including competition from Ford’s F-150 Lightning electric pickup truck, while a supply chain crisis is limiting production at its plants.
Ford Motor Co sold eight million shares of Rivian Automotive Inc, an electric vehicle manufacturer, for $214 million, or $26.80 each, according to a filing on Tuesday.
According to Refinitiv statistics, Ford now owns over 94 million shares, or 10.5 percent of the corporation, and is still the fourth-largest shareholder in the Irvine, California-based firm.
Rivian is battling in a competitive market, which includes Ford’s electric pickup truck, the F-150 Lightning, and a supply chain crisis that is hampering production at its plants.
Read More: New Ford SUV Spotted Testing In Michigan
The electric vehicle manufacturer had previously cut its anticipated production for 2022 in half, to 25,000 vehicles.
Ford’s May 9 selling price of $26.8 per share was lower than Rivian’s Friday close of $28.79.
Since CNBC revealed the deal over the weekend, Rivian’s stock has plunged roughly 21%.
With an 18.2 percent holding, T.Rowe Price Associates is the company’s largest stakeholder, followed by Amazon.com Inc with a 17.7 percent stake.
Read More: Ford And Honda Bail On 2022 SEMA Show
Amazon.com’s operating income fell by 59 percent in the first quarter, owing to its investments in the automaker.
The U.S. retail giant, which is also one of Rivian’s key customers, expects to receive 100,000 delivery vans by 2024.
A markdown in the value of Ford’s stake in Rivian led to its first-quarter net loss of $3.1 billion.
Rivian and Ford did not immediately respond to requests for comment.