Rivian founder RJ Scaringe grabs $1M in EV makers stock – businesstraverse.com

Rivian founder and CEO RJ Scaringe bought 41,000 shares of the company worth approximately $1 million, a filing securities posted Monday afternoon shows.

Scaringe now owns 169,175 direct shares worth $4,205,690 based on Monday’s closing price. He also owns 4.3 million indirect shares through a trust and 4,595 indirect shares through an LLC.

The purchase comes as Rivian shares hit a new low on Monday after news of a legal dispute with a seat supplier jeopardizing its Amazon electric van program and Ford’s revelation that it is buying an additional 7 million of its shares. sold in the company.

A Rivian spokesperson declined to comment on why Scaringe bought the stock now.

Rivian debuted as a publicly traded company in November with an opening price of $106.75, a price that made it one of the largest IPOs in US history and put its market cap above GM and Ford. (At the time, GM’s market cap was $86.31 billion, Ford’s $78.2 billion.)

The company’s stock price peaked at $179.47 a week later. But a combination of general market volatility and material revelations by Rivian have caused the stock price to fall more than 75% since the market’s public opening.

Ford, which had a 12% stake or about 102 million shares in Rivian, sold 8 million shares of the company earlier this month. That first sale caused Rivian’s stock to fall by more than 17%. On May 13 Ford sold another 7 million sharesbringing the total interest below 10%.

That “below 10%” threshold means Ford no longer has to file a Form D with the U.S. Securities and Exchange Commission. Under SEC rules, “insiders” who owns 10% or more shares must report most of their transactions involving the company’s stock to the SEC on Forms 3, 4, or 5 within two business days.

As the beneficial owner, Ford will still be required to file a Schedule 13D report, which is required within 10 days of transaction, until its holding falls below 5%.