Many people are confused by Ford’s (NYSE:F) decision to sell more shares of Rivian (Nasdaq:RIVN) stock. Ford sold off another 7 million shares of RIVN after selling 10 million of its dwindling shares last week.
But with Ford joining the EV race at an accelerating pace, it makes sense that it’s selling the shares of its competitor.
Would you be concerned if McDonald’s (NYSE:MCD) started selling its stakes of Burger King?
It would actually be concerning if Ford wasn’t selling. Indeed, the company is simply saying, “We believe in our trucks more than Rivian’s.”
Ford bought the shares of Rivian stock when it was not going to make electric trucks. Now that it is, it’s betting on itself instead.
But we don’t think this means anything for Rivian stock. Rivian has a bright future and is one of the EV startups that could lead the industry by 2030.
Investors may want to wait for the price action to improve before getting into the stock. But if you’re a long-term investor, buying here could be a fantastic strategy.
Check out Hypergrowth Investing on YouTube to watch this week’s episode.
The post Ford Dumps Rivian Stock, But What Does That Mean for RIVN? appeared first on InvestorPlace.
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