Ford Continues Selling Rivian Stake

by Matt Posky

Published: May 16th, 2022

Ford Motor Co. has decided to continue offloading Rivian stock, with the burgeoning electric vehicle manufacturer at roughly $24 per share. After divesting itself of 8 million shares earlier this month, Blue Oval sold another 7 million ahead of the weekend — leaving itself holding about 9.7 percent of the company.

With 86.9 million shares leftover from the sale, Ford remains a relevant stakeholder. However, investors are growing worried that the legacy manufacturer will continue dumping Rivian as a way of salvaging future losses. Ford, which previously owned some 102 million shares in Rivian, endured a massive $3.1-billion loss in its first quarter as the value of its investment in the company slumped. Worse still, investors are souring on tech and EV stocks in general.

Analysts are torn as to why. Popular suppositions include the general state of the market and the rising costs of commodities that battery production is overwhelmingly reliant on and claims that the influx of shady EV startups has gradually soured investors on their future prospects.

Rivian’s specific problems are no less complicated. Unlike some of its less-than-reputable counterparts, the brand has made real headway in terms of production and received meaningful financial support from the likes of Ford and Amazon. It also recently announced plans to establish a new facility in Georgia to assemble all-electric SUVs. But it endured a $1.59 billion in the first quarter of 2021 and has cut back its previous assertion that it could produce 40,000 vehicles annually to just 25,000.

This puts investors in a bit of a pickle. Rivian still seems to have some solid momentum behind it and may yet rebound after its lofty IPO settles down. However, that assumes that investors still think it’s a good buy at its present valuation and that Ford and Amazon will not continue offloading shares.

[Image: Rivian]

#All-electric #EV #EVStocks #Ford #FordMotorCo #HighFinance #Investments #PickupTrucks #Rivian #StockMarket #Stonks #TechStocks

Matt Posky

A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.

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Art Vandelay on May 17, 2022

Trump is bad. Nobody said it for a while I piped up

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- See 3 previous
- ToolGuy on May 17, 2022
  
  @Art, This guy here doesn't like Trump OR Biden: https://youtu.be/vya8YbN6SnI Weird.
  
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- Art Vandelay on May 17, 2022
  
  @ToolGuy I am voting for Nancy Reagan's astrologer and Monica Lewinsky's dry cleaner
  
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- SCE to AUX on May 17, 2022
  
  @Art Vandelay COTD
  
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- Sgeffe on May 17, 2022
  
  @Art Vandelay Yikes!
  
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BEPLA on May 17, 2022

Ford buys Rivian to collaborate on new trucks/SUVs. Values go up. Ford then says they won't collaborate w/ Rivian on new trucks/SUVs. Values go down. Meanwhile, Ford develops it's own electric truck and brings it to market in record time. Ford then sells Rivian stock as a result of stock going down and lack of collaboration. Values go down some more. Ford doesn't suffer because all those investment losses are tax deductible against record profits. If Ford continues selling, Rivian values could continue to plummet, submarining Rivian. Who wants to bet Ford never really intended to collaborate with Rivian on anything - that this is exactly what was planned?

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- Art Vandelay on May 17, 2022
  
  I don't think its that complex. They were hedging their bets. As it turns out the Mach-E was pretty successful and they had no real issues getting the Lightning to market. As their own EV portfolio is now more mature than Rivian's, they no longer have need of them.
  
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- Levaris on May 17, 2022
  
  @Art Vandelay As a day-two reservation holder on a Lightning, as well as a direct line to Ford Fleet staff due to our annual purchase with them, I can tell you that their version of "Lightning to market" is overstated. These things are going to be trickling off the assembly line for the next year. Meanwhile Rivian is able to sell me 13 trucks in a 1-month time span.
  
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- SoCalMikester on May 17, 2022
  
  @levaris funny, because rivian isnt going to be able to meet amazons demand. theyll take your money no prob.
  
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- BEPLA on May 17, 2022
  
  @SoCalMikester Tesla did the same - as has Lucid and Ford (Bronco anyone?) and others who introduce a vehicle, accept deposits, then sit on the money until they eventually get around to delivering cars. Nothing new here.
  
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Recent Comments

Oberkanone How long do I have to stay in this job before I get a golden parachute?I'd lower the price of the V-Series models. Improve the quality of interiors across the entire line. I'd add a sedan larger then CT5. I'd require a financial review of Celestiq. If it's not a profit center it's gone. Styling updates in the vision of the XLR to existing models. 2+2 sports coupe woutd be added. Performance in the class of AMG GT and Porsche 911 at a price just under $100k. EV models would NOT be subsidized by ICE revenue.
NJRide Let Cadillac be Cadillac, but in the context of 2024. As a new XT5 owner (the Emerald Green got me to buy an old design) I would have happy preferred a Lyriq hybrid. Some who really like the Lyriq's package but don't want an EV will buy another model. Most will go elsewhere. I love the V6 and good but easy to use infotainment. But I know my next car will probably be more electrified w more tech.I don't think anyone is confusing my car for a Blazer but i agree the XT6 is too derivative. Frankly the Enclave looks more prestigious. The Escalade still has got it, though I would love to see the ESV make a comeback. I still think GM missed the boat by not making a Colorado based mini-Blazer and Escalade. I don't get the 2 sedans. I feel a slightly larger and more distinctly Cadillac sedan would sell better. They also need to advertise beyond the Lyriq. I don't feel other luxury players are exactly hitting it out of the park right now so a strengthened Cadillac could regain share.
CM Korecko Cadillacs traditionally have been opulent, brash and leaders in the field; the "Standard of the World".That said, here's how to fix the brand:[list=1][*]Forget German luxury cars ever existed.[/*][*]Get rid of the astromech droid names and bring back Seville, Deville, Eldorado, Fleetwood and Brougham.[/*][*]End the electric crap altogether and make huge, gas guzzling land yachts for the significant portion of the population that would fight for a chance to buy one.[/*][*]Stop making sports cars and make true luxury cars for those of us who don't give a damn about the environment and are willing to swim upstream to get what we really want.[/*][*]Stop messing around with technology and make well-made and luxurious interiors.[/*][*]Watch sales skyrocket as a truly different product distinguishes itself to the delight of the target market and the damnation of the Sierra Club. Hell, there is no such thing as bad publicity and the "bad guy" image would actually have a lot of appeal.[/*][/list=1]
FreedMike Not surprisingly, I have some ideas. What Cadillac needs, I think, is a statement. They don’t really have an identity. They’re trying a statement car with the Celestiq, and while that’s the right idea, it has the wrong styling and a really wrong price tag. So, here’s a first step: instead of a sedan, do a huge, fast, capable and ridiculously smooth and quiet electric touring coupe. If you want an example of what I’m thinking of, check out the magnificent Rolls-Royce Spectre. But this Cadillac coupe would be uniquely American, it’d be named “Eldorado,” and it’d be a lot cheaper than the $450,000 Spectre – call it a buck twenty-five, with a range of bespoke options for prospective buyers that would make each one somewhat unique. Make it 220 inches long, on the same platform as the Celestiq, give it retro ‘60s styling (or you could do a ‘50s or ‘70s throwback, I suppose), and at least 700 horsepower, standard. Why electric? It’s the ultimate throwback to ‘60s powertrains: effortlessly fast, smooth, and quiet, but with a ton more horsepower. It’s the perfect drivetrain for a dignified touring coupe. In fact, I’d skip any mention of environmental responsibility in this car’s marketing – sell it on how it drives, period.  How many would they sell? Not many. But the point of the exercise is to do something that will turn heads and show people what this brand can do.  Second step: give the lineup a mix of electric and gas models, and make Cadillac gas engines bespoke to the brand. If they need to use generic GM engine designs, fine – take those engines and massage them thoroughly into something special to Cadillac, with specific tuning and output. No Cadillac should leave the factory with an engine straight out of a Malibu or a four-banger Silverado. Third step: a complete line-wide interior redo. Stop the cheapness that’s all over the current sedans and crossovers. Just stop it. Use the Lyriq as a blueprint – it’s a big improvement over the current crop and a good first step. I’d also say Cadillac has a good blend of screen-controlled and switch-controlled user interfaces; don’t give into the haptic-touch and wall-to-wall screen thing. (On the subject of Caddy interiors – as much as I bag on the Celestiq, check out the interior on that thing. Wow.)Fourth step: Blackwing All The Things – some gas, others electric. And keep the electric/gas mix so buyers have a choice.Fifth step: be patient. That’s not easy, but if they’re doing a brand reset, it’ll take time. 
NJRide So if GM was serious about selling this why no updates for so long? Or make something truly unique instead of something that looked like a downmarket Altima?