Recently, the American automobile company Ford issued an announcement on the upcoming fourth quarter results and some large-scale projects on February 3. Most surprisingly, After Ford's initial public offering of common stock on November 10, 2021 and revaluation of its holdings by market capitalization, it found that its equity investment in Rivian earned $8.2 billion in the fourth quarter.
Rivian CEO RJ Scaringe (left) and Ford Motor Company Chairman Bill Ford (right)
Since the beginning of 2019, Ford has invested a total of $1.2 billion in Rivian and currently owns a 12% stake in the electric car maker, while it broke through the $100 billion mark at its peak, even higher than Ford's market capitalization, due to the previous rise in Rivian's stock price. In this significant positive, Ford's Rivian stock was valued at $10 billion in December, and excluding the cost of the previous investment of $1.2 billion, the stock alone earned $8.2 billion in the fourth quarter. According to Ford's 2020 financial report, its net loss for the whole year of 2020 is $1.3 billion, although this has the impact of the epidemic, but this comparison can also reflect how successful Ford's investment is.
Rivian Nasdaq is listed
Although Ford has previously stepped down from Rivian's board of directors and is no longer working with it to develop new electric vehicles, Ford can continue to benefit from the electric vehicle startup's shares. At the same time, Ford said in the announcement that it would reclassify the approximately $900 million in non-cash gains from investing in Rivian in the first quarter of last year as a special project, and thereafter report the gains or losses related to Theivian stock price as special items every quarter.