Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

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
F
-

(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

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.