The once-promising strategic partnership between Ford and Rivian is “almost full” after a brand new SEC submitting exhibits Ford trimmed its stake to only 10.5 million shares in 2022.

Ford trims Rivian stake to a mere 1.15% possession

The partnership started in 2019 after Ford invested $500 million in Rivian, marking a key milestone within the firm’s shared imaginative and prescient of accelerating sustainable mobility.

Along with the funding, Ford stated it could use Rivian’s electrical platform to develop its personal Ford or Lincoln-branded EV alongside its deliberate F-150 electrical pickup (now referred to as the F-150 Lightning) and Mustang-inspired electrical crossover (the Mustang Mach-E).

Preliminary plans included for Ford to take over some manufacturing capability at Rivian’s Illinois manufacturing facility, however Ford introduced in April 2020 it could be shifting away from utilizing Rivian’s platform, as a message to workers acknowledged:

As we moved by means of the event cycle, we decided that it could be higher to pivot from the Rivian skateboard platform and focus our improvement efforts.

Regardless of a spokesperson claiming Ford and Rivian will proceed to be nice companions, the 2 agreed it could be higher to concentrate on their very own tasks.

In April 2022, Ford reported a $5.4 billion write-down on its funding after Rivian’s inventory collapsed over 70% from its highs. Ford’s SEC submitting in Might 2022 confirmed Ford owned 86.9 million shares after promoting seven million for $26.88 per share.

After releasing fourth quarter and full 12 months 2022 earnings earlier this month, Ford’s CFO instructed traders and analysts the corporate was offering its first quarter common dividend of $0.15 per share alongside a supplemental considered one of $0.665 per share, “reflecting our robust free money movement and the monetization of our Rivian stake, which is now almost full.”

Ford’s newest SEC submitting on Wednesday indicated the automaker lowered its stake additional to only 10.5 million shares or 1.15% of Rivian’s inventory. Final week, Ford reported one other write-down in its funding of $7.3 billion.

Rivian’s inventory is down 70% over the previous 12 months, and the EV maker has struggled to show a revenue because it seems to be to realize full-scale manufacturing.

In the meantime, Ford’s CEO Jim Farley says the corporate’s next-generation EV pickup and electrical platform are “deep in improvement.”

Electrek’s Take

It seems to be just like the strategic partnership between Ford and Rivian has fallen by means of. Though it could have been fascinating to see what the younger EV startup and legacy automaker might have developed, it’s seemingly greatest they go in separate instructions.

To make an electrical car (and make it profitably), creating in-house expertise shall be vital to streamlining manufacturing. Farley has just lately stated Ford is “going again to our Mannequin A” in reference to bringing part manufacturing again.

We’ll replace you if we hear extra in regards to the scenario.