RJ Scaringe, Rivian founder and CEO, and Ford Govt Chairman Bill Ford announce a $500 million Ford investment in Rivian.
Source: Ford Motor Co.
DETROIT – Ford Motor liquidated most of its ownership stake previous calendar year in electric powered motor vehicle maker Rivian Automotive, according to the Detroit automaker’s annual report submitted to the Securities and Trade Fee on Friday.
Ford bought 91 million shares of the EV startup in 2022, according to the filing. Ford’s sale of the shares was value about $3 billion in complete proceeds, the corporation stated, a significant get on its $1.2 billion investment decision in Rivian.
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Ford, as of the stop of past calendar year, still owned about 11 million of its first 101.9 million shares of Rivian. The enterprise declined to remark on ideas for the remaining shares, which even now designed the automaker 1 of the company’s largest shareholders, in accordance to FactSet. Rivian also declined to remark.
Ford initial invested in Rivian in 2019, prior to the EV maker went community. At the time, the two firms stated that Ford would develop an electric powered automobile dependent on the “skateboard” platform that now underpins Rivian’s R1T pickup and R1S SUV. Regardless of previous Ford CEO Jim Hackett’s enthusiasm for the deal, individuals designs by no means came to fruition.
But as a consequence of that preliminary financial commitment, Ford was among the most significant stakeholders in the firm on Rivian’s blockbuster IPO in 2021, with a 12% stake.
Ford said that it marketed 25.2 million shares of Rivian in the 2nd quarter, for about $700 million in complete proceeds. It marketed an supplemental 51.9 million shares for the duration of the third quarter for about $1.8 billion, in accordance to previously filings.
Hackett’s successor, Jim Farley, experienced produced it apparent that Ford would likely provide its stake, but it was unclear when the automaker planned to provide the shares and exit Rivian.
Ford unrealized gains/losses have been $8.3 billion achieve in 2021 and a $968 million loss in 2022, which weakened the automaker’s bottom-line very last yr.
Soon following Rivian’s blockbuster IPO in November 2021, shares of the company arrived at an all-time high of almost $180 a share throughout Wall Street’s infatuation with EV startups that led to inflated valuations of early- or pre-earnings organizations.
Rivian’s stock is now investing all over $20 a share, subsequent various missed targets and a slower-than-anticipated raise in automobile production at a plant in Usual, Illinois. The business is valued at about $18 billion.