Electric car company Rivian went public on November 9, 2021, which means its lockup, scheduled for 180 days after the IPO, is scheduled to expire next week. A lockup prohibits early investors and corporate insiders from trading the company's stock prior to the lockup expiration. In this case, Ford and Amazon are two early investors with large stakes in Rivian, but nether has indicated whether it will sell Rivian shares. A stock price can often drop significantly after the lockup as large shareholders attempt to sell shares. However, Rivian is down about 70 percent from its IPO price, so a price drop after the lockup may not happen. For example, Meta Platforms and Uber both saw price increases after the lockup. As the article states, the market is forward looking, so the potential price drop may already factored into the stock price.
