Ford, Rivian abandon plans to jointly develop electric vehicle
$Ford Motor(F.US$ and $Rivian Automotive(RIVN.US$ are scrapping plans to collaborate on developing an electric vehicle, according to multiple reports, deciding they would rather pursue their own specific plans.
A Ford representative confirmed comments from CEO Jim Farley in an interview with Automotive News that Ford had decided to cancel plans to jointly develop an EV.
"Both their EV development and ours have advanced to a significant degree" since the original deal was formed, giving each company more confidence to move ahead independently, the Ford rep tells the Wall Street Journal.
Ford owns a ~12% stake in Rivian, whose market cap has ballooned to 1.5x more than the 118-year-old automaker - $113B vs. $77.5B as of today's close - since going public on November 10.
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wild horse : Why doesn't Ford liquidate their stake in Rivian by taking advantage of the craze around Rivian stock and use its proceeds to accelerate the development of their own EV models.
Milenko wild horse: Probably subject to a lockup. Also such a large stake has to be sold gradually
T_shares Milenko: Can't speak to the lockup, if any, but you're incorrect on the gradual sale. All the shares could be priced 3 points in the hole and offered on a secondary and they'd be gone in an instant. The major houses would fall all over themselves to underwrite that deal...
EEC6iRWd4p wild horse: Ford owns preferred stock that would first need to be converted into common stock and then registered under the 1933 Act to be sold on the open market.
TvhXCjkODq EEC6iRWd4p: IIUC, F has just common (100M shares). They bought in @ about 1.4B.
Amazon has a larger % ownership and it has preferred.
vYcu5FgULx : Best move to Ford is to sell its stake and take advantage of Rivian s over valuation.
KHVgqUvpZS vYcu5FgULx: Can they though? Is there a lock-up period?
rARVOf0f5Z KHVgqUvpZS: 30 days i believe
21th Wall rARVOf0f5Z: Thanks. I'm assuming that's all that's left in the lock-up period is what you mean? I can't imagine such a deal not have a good time period for lockup.
KiddTM KHVgqUvpZS: $Ford Motor (F.US)$ is brining F150 Lightening in Q2 - 2022
That is the most selling truck ever in History of America
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