Ford Motor Co (F.N) said in a filing on Tuesday that it had sold eight million shares of Rivian Automotive Inc (RIVN.O) for $214 million, or $26.80 per share.
According to Refinitiv statistics, Ford currently owns over 94 million shares, or 10.5 percent of the corporation, and is still the fourth-largest stakeholder in the Irvine, California-based firm.
Rivian is battling a competitive market, which includes Ford’s electric pickup truck, the F-150 Lightning, and a supply chain issue that is hampering output at its factories.
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The electric vehicle manufacturer has already cut its anticipated output for 2022 in half to 25,000 cars.
Ford’s May 9 selling price of $26.8 per share was lower than Rivian’s Friday closing 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 most significant stakeholder, followed by Amazon.com Inc (AMZN.O) with a 17.7 percent position.
Amazon.com’s operating income fell by 59 percent in the first quarter, owing to its investments in the automaker.
By 2024, the American retailer, a major Rivian client, intends to get 100,000 delivery vehicles.
Ford’s first-quarter net loss was $3.1 billion due to a decrease in the value of its Rivian shareholding.
Rivian and Ford did not reply to demands for comment right away.
