Ford has additional reduce its stake in electrical automobile startup Rivian, and Reuters studies it now has only one.15 p.c of the corporate.
Rivian’s inventory costs have been harm by the model lacking – nevertheless narrowly – its quantity goal in 2022 as a result of provide chain constraints.
It produced 24,337 autos, simply shy of its 25,000 goal. It is aiming to provide 50,000 autos this yr.
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In an effort to cut back prices, Rivian has introduced six p.c of its 14,000 staff shall be laid off.
The Blue Oval initially invested US$500 million (A$723 million) into Rivian in April 2019.
The worth of this funding grew to US$10.6 billion (A$15.three billion) when Rivian went public in November 2021, and by the tip of 2021, Ford had an 11.four p.c stake within the firm.
Rivian share costs have been trending downward since then, nevertheless, dropping 82 p.c of their worth in 2022.
The corporate’s inventory value peaked in November 2021 at US$129.95 (A$187.91), taking the carmaker to the third spot total in market capitalization throughout publicly listed automobile producers, behind Tesla and Toyota.
As of final Friday, the share value was US$18.85 (A$27.26).
Ford already wrote down its funding in Rivian by US$7.four billion (A$10.7bn) in 2022. The yr prior, it canceled plans to build two vehicles – one with a Ford badge, the opposite a Lincoln – that will have used Rivian’s skateboard platform.
Ford hasn’t been the one big-name backer of Rivian, with Amazon being one other of the startup’s key buyers.
The e-commerce big is ready to obtain 100,000 all-electric Rivian vans by 2030. It is at present the corporate’s largest shareholder with an 18 p.c stake.
In 2021, Rivian began deliveries of the R1T, whereas the R1S adopted in 2022.
It is at present constructing a brand new manufacturing unit in Georgia, set to open in 2025.
The corporate is planning on a brand new automobile vary, known as the R2, in addition to smaller business autos.
The R2 has been delayed till 2026 as Rivian focuses on its present R1T, R1S and EDV 700 van, which it says it’s now “ramping up manufacturing and deliveries” for.
The shuffle of priorities has additionally seen Rivian’s plans to build vans with Mercedes-Benz paused.
