Ford in its first-quarter financial report suffered a loss of $3.1 billion, largely due to a decline in the value of its investment in Rivian.
The decline in Rivian’s share price since its IPO in November had a major impact on Ford’s profitability. At the beginning of the year, Rivian’s stock was around $102. However, they fell to ~$50 on March 31, 2022. Today, the stock opened at just $31.59.
In addition to Rivian’s falling share price, the global chip supply chain crisis also affected Ford’s vehicle production from January to February 2022. Vehicle deliveries fell 9 percent in the quarter, to around 970,000 vehicles.
See also: Rivian to add Sand Mode, Pet Mode and Dashcam via over-the-air (OTA) update
Ford began investing in Rivian in 2019. At that time, the company announced a joint venture to develop electric trucks. The plan did not materialize, but Ford retained its investment in Rivian.
In the first quarter of 2022, Ford had generated $2.3 billion in pre-tax revenue and is on track to meet its targets for the full year.
Asked about the matter, Ford’s board declined to comment. However, Ford CEO Jim Farley said that he really liked Rivian’s business concept and hoped that all would be well.
See also: Rivian build 2,553 electric vehicles in Q1 2022, delivered 1,227
If things got worse, Ford could not immediately sell its stake in Rivian. They have to wait for the new IPO meeting to take place around May or June.
Despite the loss of funds owned by Ford, the Detroit auto giant has start regular manufacturing of F-150 Lightning electric pickup truck. Amazingly, the truck has received fantastic orders until the queue reaches 2023. Ford also Confirms Second Electric Pickup Truck After The F-150 Lightning. Ford did not provide further details about the second electric pickup truck in question. But says that it will be built at BlueOval City’s $5.6 billion production facility in Stanton, Tennessee.
