RJ Scaringe, Rivian founder and CEO, and Ford Govt Chairman Invoice Ford announce a $500 million Ford funding in Rivian.
Supply: Ford Motor Co.
DETROIT – Ford Motor liquidated maximum of its possession stake ultimate yr in electrical automobile maker Rivian Car, consistent with the Detroit automaker’s annual record submitted to the Securities and Alternate Fee on Friday.
Ford offered 91 million stocks of the EV startup in 2022, consistent with the submitting. Ford’s sale of the stocks was once price about $3 billion in general proceeds, the corporate stated, a considerable achieve on its $1.2 billion funding in Rivian.
Ford, as of the tip of ultimate yr, nonetheless owned about 11 million of its preliminary 101.9 million stocks of Rivian. The corporate declined to touch upon plans for the rest stocks, which nonetheless made the automaker one of the crucial corporate’s biggest shareholders, consistent with FactSet. Rivian additionally declined to remark.
Ford first invested in Rivian in 2019, sooner than the EV maker went public. On the time, the 2 firms stated that Ford would construct an electrical automobile in accordance with the “skateboard” platform that now underpins Rivian’s R1T pickup and R1S SUV. In spite of former Ford CEO Jim Hackett’s enthusiasm for the deal, the ones plans by no means got here to fruition.
However on account of that preliminary funding, Ford was once a number of the biggest stakeholders within the corporate upon Rivian’s blockbuster IPO in 2021, with a 12% stake.
Ford stated that it offered 25.2 million stocks of Rivian in the second one quarter, for roughly $700 million in general proceeds. It offered an extra 51.9 million stocks right through the 3rd quarter for roughly $1.8 billion, consistent with previous filings.
Hackett’s successor, Jim Farley, had made it transparent that Ford would most likely promote its stake, nevertheless it was once unclear when the automaker deliberate to promote the stocks and go out Rivian.
Ford unrealized positive aspects/losses had been $8.3 billion achieve in 2021 and a $968 million loss in 2022, which broken the automaker’s bottom-line ultimate yr.
In a while after Rivian’s blockbuster IPO in November 2021, stocks of the corporate reached an all-time prime of just about $180 a percentage right through Wall Boulevard’s infatuation with EV startups that ended in inflated valuations of early- or pre-revenue firms.
Rivian’s inventory is now buying and selling round $20 a percentage, following a number of overlooked objectives and a slower-than-expected build up in automobile manufacturing at a plant in Standard, Illinois. The corporate is valued at about $18 billion.
