Rivian founder and CEO RJ Scaringe purchased 41,000 shares of the company worth about $1 million, according to a securities filing released Monday afternoon.
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 tumbled on Monday after news broke of a legal dispute with a seating supplier that puts its Amazon electric van program at risk and Ford’s disclosure that it sold an additional 7 million of his assets in the company.
A spokesperson for Rivian declined to comment on why Scaringe was buying 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 U.S. history and placed its market capitalization above GM and Ford. (At the time, GM’s market capitalization was $86.31 billion; Ford’s was $78.2 billion.)
The company’s stock price hit $179.47 a week later. But a combination of general market volatility and major disclosures from Rivian has sent its stock price down more than 75% since it opened to the public market.
Ford, which held a 12% stake, or about 102 million shares, of Rivian, sold 8 million shares of the company earlier this month. This initial sale caused Rivian shares to fall more than 17%. On May 13, Ford sold an additional 7 million shares, pushing its total stake below 10%.
This “less than 10%” threshold means that Ford no longer has to file a Form D with the United States Securities and Exchange Commission. Under SEC rules, “insiders” who own 10% or more stock must report most of their transactions involving the company’s equity securities to the SEC within two business days on Forms 3, 4 or 5.
As the beneficial owner, Ford will still have to file a Schedule 13D report, which is required within 10 days of the transaction, until its ownership falls below 5%.
The article has been updated to clarify that the Scaringe stock purchase came as shares fell on Monday; the stock price was not at a new low.