Ford Motor Co. published their Q1 2022 earnings report yesterday, posting a net loss of $3.1 billion. One of the major reasons for the red figure was due to their investment in Rivian.
Ford currently holds a 12% stake in Rivian, and with its share prices plummeting since its IPO last year, that stake is now worth $5.1 billion, down from $10.6 billion.
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Keeping in mind that these figures are based on the end of Q1, there is a chance Ford will post another loss on their Rivian investment in Q2.
Shares of RIVN have dropped further in April and are now trading in the low $30 range, down from around $50 at the end of March.
Ford is stuck with their holdings until the lock-up period for pre-IPO investors ends on May 8, but the company did not comment on whether they plan to hold on to their investment after that date.
“We’re not going to comment on Rivian,” Chief Financial Officer John Lawler said Wednesday during the call. (via CNBC)
Aside from the Rivian effect, Ford reported strong demand for its vehicles in Q1, but said production and deliveries continue to be slowed down by supply chain issues.
Ford’s revenue during the first three months of the year dropped to $34.4 billion, down 9% from the same period last year.
You can read their full earnings report below.2022-financials-FORD-1Q