A Second $RIVN “Lockup” Likely Ends Tomorrow

TL;DR Rivian employees can finally sell their shares on Friday [1], which could easily result in more shares sold than Ford’s recent sale of 8 million shares. This is hugely bearish news given that Ford’s sale resulted in a 20% decline in $RIVN. Main Points * Rivian employees owning nearly 100 million shares [2] are free for the first time ever to sell on Friday now that earnings have been reported. Many of these employees will be looking to lock in their IPO wealth. * These shares weren’t eligible after Monday’s lockup expiration because of the traditional blackout period preceding earnings. This restriction applies to corporate insiders and is designed to prevent trading on non-public information. * To put into context, $RIVN declined over 20% on Monday after reports that Ford sold 8 million of the approximately 102 million shares they own Details * [1] Blackout period for employees is based on anonymous source from Blind forums * [2] The 100 million shares owned by employees was derived from Rivian’s S-8 filing and includes both options and RSUs from their 2015 incentive plan, both of which are fully vested per page 180 of their S-1 filing. Newly-joined employees are subject to the 2021 incentive plan, which reserves an additional 99 million shares that can be awarded, but most of these will be unvested and therefore not eligible for sale. Risks * I haven’t been able to confirm when the blackout period for employees ends other than from the anonymous source. It’s possible that employees are already able to sell, in which case this opportunity is a dud, or that the date is actually further in the future.

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A Second $RIVN “Lockup” Likely Ends Tomorrow

May 12, 2022

bearish

general Analysis

[1 min Read]

TL;DR

Rivian employees can finally sell their shares on Friday [1], which could easily result in more shares sold than Ford's recent sale of 8 million shares. This is hugely bearish news given that Ford's sale resulted in a 20% decline in $RIVN.

Main Points * Rivian employees owning nearly 100 million shares [2] are free for the first time ever to sell on Friday now that earnings have been reported. Many of these employees will be looking to lock in their IPO wealth. * These shares weren't eligible after Monday's lockup expiration because of the traditional blackout period preceding earnings. This restriction applies to corporate insiders and is designed to prevent trading on non-public information. * To put into context, $RIVN declined over 20% on Monday after reports that Ford sold 8 million of the approximately 102 million shares they own

Details * [1] Blackout period for employees is based on anonymous source from Blind forums * [2] The 100 million shares owned by employees was derived from Rivian's S-8 filing and includes both options and RSUs from their 2015 incentive plan, both of which are fully vested per page 180 of their S-1 filing. Newly-joined employees are subject to the 2021 incentive plan, which reserves an additional 99 million shares that can be awarded, but most of these will be unvested and therefore not eligible for sale.

Risks * I haven't been able to confirm when the blackout period for employees ends other than from the anonymous source. It's possible that employees are already able to sell, in which case this opportunity is a dud, or that the date is actually further in the future.

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RIVN

Rivian Automotive, Inc.

25.82

0.12
0.47%

Return

-6.26%
Change % Since Posting
-1.52
Change Since Posting
24.30
Price When Posted

Metrics

24.00
Target Price
5/ 10
Confidence
1-2 Months
Timeframe
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Earnings Release
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News
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SEC
Filing
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Sentiment
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