Reuters reported that Ford Motor said in an SEC filing on Friday that it sold 7 million shares of electric vehicle maker Rivian for about $188.2 million, or $26.88 a share. Ford currently holds 86.9 million shares of Rivian.
Ford Motor reportedly sold 8 million shares of Rivian for $214 million in regulatory filings Tuesday.
Supply chain issues such as lack of cores and rising raw materials have limited production at the Rivian plant, while facing fierce competition, including from the Ford F-150 Lightning electric pickup.
Earlier this year, Rivian cut its 2022 production in half to 25,000 vehicles due to issues such as those mentioned above. Recently, Rivian released its first-quarter 2022 results. Rivian reiterated its annual forecast for 2022, predicting a total loss of $4.7 billion for the full year, with a total production of 25,000 vehicles and an estimated capital expenditure of $2.6 billion.
Rivian pointed out that the loss was mainly due to the low level of production capacity. Rivian expects this to continue in the short term, but it will improve as production ramps up. In the shareholder letter, Rivian said net bookings have increased since the announcement of the price increase, indicating strong demand.
Since the beginning of March, orders for the new R1 have exceeded 10,000.
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