For a while there, it seemed like Ford’s efforts to go electric would go hand-in-hand with Rivian’s.
The iconic automaker became a minority partner in the promising electric pickup-and-SUV startup, and even began drawing up plans for a jointly developed model.
But after a chaotic few years in which their partnership never really got off the ground, that dream appears to be, officially, all but over.
In the spring of 2019 — in a far different world than the one we live in now — Ford made a $500 million investment in Rivian as the startup prepared to start making its first vehicles. The companies later indicated that they would join forces on a new electric SUV from Ford’s Lincoln luxury brand.
And then, things went south — for pretty much everybody.
After taking a significant loss around the beginning of the COVID-19 pandemic, Ford decided that the companies should instead continue to pursue their own projects, putting the SUV project on hold, then canceling it outright in late 2021 – right around the time of Rivian’s bonanza initial public offering.
By the end of that year, Ford held an estimated 11.4% stake in a company still riding high off a promising debut. The good times, however, would be short-lived: plagued by supply-chain headaches and other issues, Rivian struggled to meet production targets for its well-received vehicles, and its stock price plummeted; it has fallen from its initial peak of nearly $180 per share down to less than $19.
Ford, as it turned out, was joining the sell-off. In its latest earnings report, the company wrote down $7.3 billion tied to its Rivian investment in 2022, and a regulatory filing last week indicated that the automaker now holds just a 1.15% stake in Rivian. It’s likely only a matter of time until that share is divested, as well.
Ford, of course, elected to chart its own path toward electrification without Rivian. Its well received Mustang Mach-E debuted in the 2021 model year, followed by the Lightning version of its best selling F-150 pickup.
Rivian, meanwhile, is reportedly emphasizing the need to “focus” in 2023 after getting way out over its skis in the years prior.
This is IEN Now.
Ford Trims its Stake in Rivian to 1%
The auto giant held a more than 10% share at the beginning of last year.
Feb 14, 2023
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