Ford Motor Company has sold a majority stake in Rivian, according to regulatory filings. Ford’s stake in the electric car maker, which has steadily declined since May 2022, is now at 1.15%, or 10.5 million shares.
The sale comes a week after Ford reported a $7.3 billion write-down on its Rivian investment last year. Since February 2022, Rivian’s stock has plummeted by nearly 70% of his.
Ford has previously followed this playbook with Rivian. Ford last April reported a $5.4 billion mark-to-market loss on its investment in Rivian. The following month, Ford sold 15 million shares of his stock in two separate transactions, slashing his stake in the EV maker to less than 10%.
Ford and Rivian’s relationship began in 2019 with a $500 million investment in a precocious EV startup. At the time, Ford also said it would build vehicles on Rivian’s “skateboard” platform. The legacy automaker canceled those plans in November 2021, citing a shift toward building its own EV lineup. Four months later, Ford increased its in-house electrification investment from $30 billion by 2025 to $50 billion by 2026. The automaker also said it would operate its EV division as a separate business from its internal combustion engine business.
Other companies like Amazon have reported some losses from their investments in Rivian. Amazon reported a $2.3 billion write-down on his Rivian stock last week, taking a toll on earnings.
Why are companies paying a price to invest in promising, if not troubled, EV companies? Recall that the all-time high of $179.47 per share.
Rivian shares fell 2.29% in afternoon trading following reports of Ford’s sale.
