Ford, a Detroit-based automaker, was once an early investor in Rivian, an electric vehicle (EV) startup. However, during a difficult 2022, Ford decided to sell off most of its shares in the company. As per a recent filing with the Securities and Exchange Commission, Ford disposed of 91 million Rivian shares in the past year.
Ford made a $3 billion profit from sales over the course of the year, resulting in a good return on their initial investment of $1.2 billion. After selling 91 million shares, they now have approximately 11 million remaining Rivian shares.
As of last year, Amazon is the largest shareholder in Rivian, holding a 17.34% stake in the electric automaker. Although T. Rowe Price and Associates sold some of its shares, it remains the second largest shareholder with a 15.4% stake. The Black Rock investment fund is the next biggest investor, owning more than 46 million shares, equivalent to approximately 5% of the automaker.
Since its 2021 Initial Public Offering (IPO), Rivian’s stock prices (RIVN) have declined significantly. The stock debuted on the NASDAQ exchange at $72 per share and reached a high of nearly $180 due to initial excitement in the company. However, slower-than-expected production and fewer deliveries have resulted in the stock trading just under $20 per share as of Friday.
Ford also faced difficulties in 2022, reporting a net income of only $1.3 billion in Q4, a significant drop from its $11 billion Q4 revenue in 2021. This led to a net loss of $2 billion for the year, far off its 2021 profit of $20 billion.
