Ford sees $8.2 billion interest on its investment after Rivian IPO

 

(Bloomberg) — Ford Motor Co. expects to understand a singular interest rate of $8.2 billion in the quarter on its investment in Rivian Automotive Inc. then the inaugural public alms from the electric truck worker at the end of last year.

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The aging automaker reported earnings on Tuesday, along with several special items it plans to popularize when Ford revises earnings on Feb. 3. The Dearborn, Michigan-based company is also reclassifying $900 million in ever-monetary gains from Rivian’s investment in the quarter ahead. past year as a singular private clause, which means that it will be excluded from the adjusted results of the absolute year, said the notified.

The spread proves that Ford continues to profit from its connection with the startup even after the auto giant dropped Rivian’s advice in September and then announced that it had scrapped plans to co-develop a unique electric vehicle. Ford, which has invested a singular total of $1.2 billion in Rivian as of the 2019 sincerity, owns a 12% stake, which the company said was valued at more than $10 billion in the December sincerity.

After listing in November, which was the biggest IPO of 2021, Rivian is on a roller coaster ride. The shares peaked at more than $172, however from there they fell 57% to the standard that the company faces new influx in the electric vehicle market. Rivian was once valued at more than $100 billion when it was more expensive than Ford, however from then on Ford later regained the lead of exceeding $100 billion for the first round last week.

Ford shares were largely unchanged after Tuesday’s close in New York, while Rivian shares rose less than 1%.

 

 

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