Tuesday Ticker: May 24, 2022

Toronto, Ontario ⁠— Ford puts an additional seven million Rivian shares up for sale as Uber tries to make up losses by Collision Repair‘s weekly Tuesday Ticker.

Red Tag Item, Rivian

Last week, it was reported that Ford Motor Co. had sold eight million shares in electric vehicle start-up Rivian. On Monday, May 16, the automaker sold an additional seven million shares, boosting its earnings from the stock decline from US$214 million to around US$402 million.

In this latest transaction, Ford sold all seven million shares for $26.88 each, for a total of approximately $188.2 million. The OEM’s move followed the end of insider blocking for Rivian shares after the startup’s IPO, which was the year’s largest IPO and raised around $12 billion. .

“We believe it is prudent at this stage to monetize a small portion of the investment,” Ford spokesman Ian Thibodeau said in a statement after the initial stock sale. The company didn’t share anything further after last Monday’s announcement.

The curious fall of Uber

Uber’s stock has fallen 30% in the past month despite its driver registrations rising by 121 in April, according to CEO Dara Khosrowshahi.

The ride-sharing company released its first-quarter 2022 financial results on May 4⁠, showing a loss of $5.9 billion, largely due to its investments in other companies, he said.

Khosrowshahi said new driver registrations increased 121% in April.

“We welcome new drivers, not as Uber Rides, not as Uber Eats, but as Uber as a platform and to earn in any way on the platform .”

Uber was originally scheduled to hold its earnings call on May 4 after the market closed, but moved the call to pre-trade hours in an alleged effort to offset negative reports from Lyft. Lyft’s announcements caused its shares to fall 31%; Uber’s own shares fell 25% on its competitor’s earnings call.

Khosrowshahi hinted at Uber’s earnings call scenario.

“You heard, I think, last night one of our competitors in the United States having challenges or at least looking to look at the supply of drivers,” he said.