Rivian Forum – Rivian R1T & R1S News, Pricing & Order... banner
1 - 9 of 9 Posts

· Registered
Joined
·
471 Posts
Discussion Starter · #1 ·
Wheel Car Tire Land vehicle Vehicle


Do you think they are just trying to recoup some $?

Do they need funds right now because their last quarter wasn't great?

With the fall-apart of the plans around sharing the Rivian skateboard platform, is there just no working together any more?

Does Ford now view Rivian as more of a rival and less of a partner and is seeking to make life difficult for Rivian?
 

· Registered
Joined
·
567 Posts
Why did Ford buy Rivian stock in the first place? That didn't make sense and now with Ford getting really good at EV's with MachE and F150, a Ranger pickup mfg by Rivian doesn't make any sense for them if that was the reason for the original investment. Amazon wants to reduce its EV delivery van costs by owning the mfg so that makes sense.

Did Ford invest in Amazon pre-IPO? At what equivalent price per share?
 

· Registered
Joined
·
9 Posts
In the end, it doesn't matter unless you are a shareholder. Rivian got help in getting their line running from Ford, and Ford got to dip their toe in the EV world without a major commitment. In my opinion, Ford was caught off guard by the interest in EVs and just moved all their plans up in manufacturing them. Don't forget there were original plans to develop a vehicle jointly. With that taken into account, it makes sense that Ford would own a stake in Rivian. Now that getting production online is finished, no joint vehicle and Ford decided to do a full press with EVs, why would the two want to continue with a partnership? Rivian got their money from the sale, and RJ likely is glad to be rid of them. The pain is real for investors, but they have a bright future if the company continues to ramp up and deliver what they have so far.
 

· Registered
2018 Tesla M3 LR / 2021 VW ID.4 AWD
Joined
·
115 Posts
Ford had invested $500MM in Rivian in 2019. For that, they received approx. 102MM shares or about $5 per share. Even at $25 per share, they made a 400% profit on their initial investment.

Ford is not in the business of investing. They do not want to be holding large interests in other companies unless they have business dealings with them. Owning an extremely volatile stock only hurts them as they do not want massive gains one quarter and massive loss the next. Ford has $21 billion in cash, they are not selling Rivian to raise funds.
 
  • Like
Reactions: St00k

· Registered
Joined
·
468 Posts
Ford had invested $500MM in Rivian in 2019. For that, they received approx. 102MM shares or about $5 per share. Even at $25 per share, they made a 400% profit on their initial investment.

Ford is not in the business of investing. They do not want to be holding large interests in other companies unless they have business dealings with them. Owning an extremely volatile stock only hurts them as they do not want massive gains one quarter and massive loss the next. Ford has $21 billion in cash, they are not selling Rivian to raise funds.
They are still making money on the investment but that 500 million was the first investment in 2019. They also invested another 901 million in early 2021 for a total investment of 1.4 billion.
 

· Registered
Joined
·
471 Posts
Discussion Starter · #6 ·
Why did Ford buy Rivian stock in the first place? That didn't make sense and now with Ford getting really good at EV's with MachE and F150, a Ranger pickup mfg by Rivian doesn't make any sense for them if that was the reason for the original investment. Amazon wants to reduce its EV delivery van costs by owning the mfg so that makes sense.

Did Ford invest in Amazon pre-IPO? At what equivalent price per share?
I honestly suspect they did it for two reasons
1. It looked good to investors
2. They could hopefully get some ideas and info off Rivian

that's it
 

· Registered
Joined
·
471 Posts
Discussion Starter · #7 ·
Ford had invested $500MM in Rivian in 2019. For that, they received approx. 102MM shares or about $5 per share. Even at $25 per share, they made a 400% profit on their initial investment.

Ford is not in the business of investing. They do not want to be holding large interests in other companies unless they have business dealings with them. Owning an extremely volatile stock only hurts them as they do not want massive gains one quarter and massive loss the next. Ford has $21 billion in cash, they are not selling Rivian to raise funds.

Damn... did they really get all those shares for roughly $5 a share?
 

· Registered
2018 Tesla M3 LR / 2021 VW ID.4 AWD
Joined
·
115 Posts
They are still making money on the investment but that 500 million was the first investment in 2019. They also invested another 901 million in early 2021 for a total investment of 1.4 billion.
Oops, forgot about the 2nd investment (what's a billion dollars between friends anyways). Thanks. I guess they only doubled their money (but doesn't change the fact they would rather not have such a volatile stock affect their financials quarter to quarter).
 
  • Like
Reactions: SANZCO2
1 - 9 of 9 Posts
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Top