Ford Motor Company (NYSE:F) stock took a hit Thursday after the company sold the majority of its stake in struggling electric vehicle maker Rivian Automotive Inc (NASDAQ:RIVN).
Ford sold off shares to bring its stake in Rivian down to 1.15%. Until late last year, Ford had a stake of 9.49%, according to reports. That comes a week after Ford’s quarterly results missed expectations, and the company reported a $7.3 billion write-down on its Rivian investment.
Rivian, based in Irvine, California, has seen its stock torpedo 70% lower since February 2022. It’s been such an ongoing concern that Ford has pulled this write-down maneuver once before in April 2022.
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“The monetization of our Rivian stake.. is now nearly complete,” Ford CEO John Lawler said on the company’s earnings call.
Friday morning, shares of Ford had recovered 1.2% to $12.85.
Ford originally invested $500 million in Rivian when it was a startup in 2019 and planned to build an electric vehicle on its “skateboard” platform. Ford ultimately opted to produce its own line of EVs instead.
Ford isn’t the only one with Rivian investment regrets. Amazon.com has also reported losses from its investment in the EV maker, announcing a $2.3 billion valuation loss in its Rivian stock last week.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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