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Ford Selling 8 Million Shares of Rivian Stock


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10 hours ago, ice-capades said:

Friday, May 13th - Ford Sells More Shares of EV Maker Rivian

The sale reduces the shares Ford holds to 86.9 million

 

Ford sold 7 million shares for about $188.2 million, or $26.88 apiece, according to a regulatory filing on Friday.

 

https://www.foxbusiness.com/markets/ford-sells-more-shares-ev-maker-rivian

 

Rivian_NASDAQ_2022-05-13.jpg

Ford will show a loss of $163,520,000 on these shares sold in its next quarterly report. (March 31 Rivian close was 50.24). 

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52 minutes ago, Trader 10 said:

Ford will show a loss of $163,520,000 on these shares sold in its next quarterly report. (March 31 Rivian close was 50.24). 

Here’s the funny thing, Ford is up $163 million in cash but get to claim another rough  $2 billion loss for Q2. If Ford managed to sell all of its stock at $23/share it will basically get back double its original investment in Rivian.

Edited by jpd80
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51 minutes ago, Cavemold said:

 i looked at  Rivian  builds and they really nickel and dime you on paint colors. Kinda ridiculous 

 

That's correct Cavemold. Tesla also has ridiculous upcharges ($1,500 or $2,500) for any exterior paint color other than Pearl White Multi Coat.

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There is no business need for Ford to maintain its investment in Rivian at the level they are.  They will continue to dispose of shares until they completely divest of their holding.  It is best for both Ford and Rivian to end Ford's ownership stake, especially as there are no current plans for any sort of sharing platforms between the two and they are in direct competition across all of Rivian's model lines.

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On 5/14/2022 at 12:27 PM, FreeFlow said:

Today, I saw two Rivian's while driving in our suburban community. Nice looking trucks.

 

Now that is really something when you consider Rivian has only made about 3,000 so far and delivered about 1500 of them. Kind of like seeing a unicorn. I have seen about 3 Broncos so far in Central FL, and Ford has delivered about 50,000 of them. 

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19 hours ago, Flying68 said:

There is no business need for Ford to maintain its investment in Rivian at the level they are.  They will continue to dispose of shares until they completely divest of their holding.  It is best for both Ford and Rivian to end Ford's ownership stake, especially as there are no current plans for any sort of sharing platforms between the two and they are in direct competition across all of Rivian's model lines.

 

Article stated that Ford now owns less than 10% of Rivian stock and is done selling. Guess time will tell.

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1 hour ago, Captainp4 said:

I don't know how it works when you're a multi billion dollar corporation, but selling at the bottom seems dumb to me.... sell right after the IPO if you're in it for the gains.

 

There are rules regulating how soon after the IPO Ford could sell - they didn't have the option to sell until recently.

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On 5/21/2022 at 9:53 PM, akirby said:

Sometimes you need the cash and/or the write off.

That’s possible.  I think Ford wanted to get under 10%.  Might be some sort of SEC scrutiny for over 10% that Ford wanted to avoid.  Also possible Ford thinks the stock will continue to sink.  Rivian is coming into a much more crowded market than Tesla.  Factor in the loyalty of truck owners and Rivian has its work cut out.  Lightning, Silverado, and Ram will continue to be the leaders because they know their customers.  Rivian will get the scraps similar to Nissan.

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On 5/21/2022 at 6:21 AM, FordBuyer said:

 

Now that is really something when you consider Rivian has only made about 3,000 so far and delivered about 1500 of them. Kind of like seeing a unicorn. I have seen about 3 Broncos so far in Central FL, and Ford has delivered about 50,000 of them. 

 

It is a rare sighting. Early days for Rivian. One in Rivian Blue, the other in Limestone.

Edited by FreeFlow
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On 5/21/2022 at 4:37 PM, Captainp4 said:

I don't know how it works when you're a multi billion dollar corporation, but selling at the bottom seems dumb to me.... sell right after the IPO if you're in it for the gains.

 

The trick with the stock market is, it's not "buy at the lowest, sell at the highest" it's buy low, sell high, which is what $F is doing.  (plus there's tax loss harvesting)

 

Trying to time the market isn't a great long-term strategy.

Edited by GrussGott
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22 hours ago, FreeFlow said:

 

It is a are sighting. Early days for Rivian. One in Rivian Blue, the other in Limestone.

 

I'm really starting to wonder how Rivian or Lucid can survive, especially with worsening supply chain problems. Both are burning through billions of dollars every quarter with no end in sight. Lucid just had to recall all their vehicles with significant wiring problems. If there were no supply problems, maybe a 50-50 shot at surviving. With supply problems and venture capital now drying up, far less than 50-50 IMO.

 

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