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Ford sells shares in EV maker Rivian for $214 million

Published 05/10/2022, 09:44 PM
Updated 05/10/2022, 10:55 PM
© Reuters. R1T is seen outside startup Rivian Automotive's electric vehicle factory in Normal, Illinois, U.S. April 11, 2022. REUTERS/Kamil Krzaczynski

(Reuters) -Ford Motor Co sold eight million shares of electric-car maker Rivian Automotive Inc for $214 million, or $26.80 apiece, the U.S. automaker said in a filing on Tuesday.

Ford now holds nearly 94 million shares, or a 10.5% stake, and is still the fourth-largest shareholder in the Irvine, California-based company, according to Refinitiv data.

Rivian is struggling in a competitive market, including competition from Ford's F-150 Lightning electric pickup truck, while a supply chain crisis is limiting production at its plants.

The electric-car maker earlier slashed its planned 2022 production in half to 25,000 vehicles.

Ford's selling price of $26.8 per share on May 9 came in lower than Rivian's close of $28.79 on Friday.

Rivian shares have dropped nearly 21% since CNBC reported the sale over the weekend.

T.Rowe Price Associates is the largest shareholder in the electric car maker with an 18.2% stake, followed by Amazon.com Inc (NASDAQ:AMZN)'s 17.7% stake.

Amazon.com posted a 59% slump in its first-quarter operating income, largely hurt by its investments in the carmaker.

The U.S. retail giant, which is also one of Rivian's key customers, expects to receive 100,000 delivery vans by 2024.

© Reuters. R1T is seen outside startup Rivian Automotive's electric vehicle factory in Normal, Illinois, U.S. April 11, 2022. REUTERS/Kamil Krzaczynski

A markdown in the value of Ford's stake in Rivian led to its first-quarter net loss of $3.1 billion.

Rivian and Ford did not immediately respond to requests for comment.

Latest comments

I didn't understand this investment in the first place. Why does Ford need to invest in direct competition?
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