Ford Motor sold eight million shares of electric-car maker Rivian Automotive for $214 million (roughly Rs. 1,652 crore), or $26.80 (roughly Rs. 2,000) apiece, the US automaker said in a filing on Tuesday.
Ford now holds nearly 94 million shares, or a 10.5 percent 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 (roughly Rs. 2,200) on Friday. Rivian shares have dropped nearly 21 percent 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 percent stake, followed by Amazon’s 17.7 percent stake. Amazon.com posted a 59 percent slump in its first-quarter operating income, largely hurt by its investments in the carmaker.
The US retail giant, which is also one of Rivian’s key customers, expects to receive 100,000 delivery vans by 2024.
A markdown in the value of Ford’s stake in Rivian led to its first-quarter net loss of $3.1 billion (roughly Rs. 23,947 crore).
Rivian and Ford did not immediately respond to requests for comment.
© Thomson Reuters 2022