Rivian’s stock sank more than 13.5% on Monday after the upstart electric truck maker and Ford dropped plans to develop an electric vehicle (EV) together.
Irvine, California-based Rivian saw its stock price fall below $112 on the Nasdaq.
“As Ford has scaled (up) its own EV strategy and demand for Rivian vehicles has grown, we have mutually decided to focus on our own projects and deliveries,” Rivian said in a statement provided to Capital.com.
Ford marketing own EVs
Ford, a traditional automaker, has started producing and selling its own EVs. After Ford invested in Rivian in 2019, the companies voiced plans to collaborate on EVs. But Ford discarded a plan to use Rivian’s chassis for a Lincoln-branded EV, according to The New York Times, and now the companies have decided to produce EVs separately.
However, Ford will not divest its interest in Rivian.
“Our relationship with Ford is an important part of our journey, and Ford remains an investor and ally on our shared path to an electrified future,” Rivian said in the statement.
Ford has issued a similar statement confirming the end of the JV efforts and its continuing investment in Rivian.
Rivian raised $11.9bn on 10 November 2021 on an upsized IPO that ranked as the most valuable market debut since Alibaba’s in 2014. The offering valued Rivian at more than $66.5bn (£49.2bn) as the company sold 153 million shares at $78 apiece.
Previously, Rivian had planned to sell 135 million shares at $72 to $74 per shares, according to a regulatory filing.
Rivian said in the document that it incurred net losses of $426m and $1.0bn in 2019 and 2020, respectively. It expects to lose hundreds of millions more for the period ending 30 September 2021, primarily due to higher operating losses tied to the development of its R1T and R1S vehicle programmes, and an additional $460m to $480m loss on issued unsecured senior convertible promissory notes.
The company only began producing EVs in September 2021, making 12 R1Ts and delivering 11. As of 31 October, it had produced 180 R1Ts and delivered 156 R1Ts.
Rivian is also backed by Amazon, which has ordered 100,000 vehicles, according to the regulatory filing.
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