© Reuters. FILE PHOTO: Employees work on the assembly line at the electric vehicle manufacturing plant of startup Rivian Automotive in Normal, Illinois, U.S. April 11, 2022. REUTERS / Kamil Krzaczynski
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(Reuters) – Ford Motor Co cut its stake in Rivian Automotive Inc to 1.15%, as part of a plan to downsize its holdings in the electric vehicle maker.
Ford, which has written off its investment in Rivian by $7.4 billion by 2022, said last week that monetization of its stake in Rivian was “nearly complete.” Ford holds an 11.4% stake in Rivian at the end of 2021.
Shares of Rivian fell 3.4% in afternoon trading. The stock underperformed in 2022, losing about 82% of its value as the company reeled from supply chain disruptions and missed its full-year production target of 25,000 units.
Reuters reported last week that Rivian is planning to lay off 6% of its staff amid a drop in cash reserves.
Ford’s updated stake in the company was revealed in a filing Wednesday.
Rivian declined to comment on the Ford share sale.
