Thursday, September 29, 2022

Ford Reportedly Sells $214 Million Worth of Its Shares in Electric Truck Maker Rivian

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.

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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.

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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.

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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


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