Should Ford sell all of its Rivian stock?
But when that lock-up period expires, Ford should seriously consider selling some or all of its roughly 102 million Rivian shares. Rivian stock ended last week at $79.95, near its IPO price of $78 but down more than 50% from its mid-November peak.
Will Rivian grow to a $70 billion market cap?
It's certainly possible that Rivian will grow into its $70 billion-plus market cap over the next decade (and far more plausible than when Rivian's market cap peaked above $150 billion two months ago).
Are Ford and Rivian working on a new EV platform?
However, last November -- shortly after Rivian's initial public offering(IPO) -- Ford and Rivian acknowledged that they no longer had any plans to work together on vehicle development or platform sharing. The companies will instead focus on their separate EV product road maps.
What's the difference between Ford's R1T and Rivian preorders?
Ford appears to be winning in preorders, with 200,000 reservations for the F-150 Lightning. Rivian has more than 90,000 preorders for its R1T truck and R1S SUV combined and 100,000 van preorders from Amazon. This preorder difference can likely be summed up in one word: Cost.
Did Ford sell its shares in Rivian?
Ford Motor Co. sold 8 million shares of electric vehicle startup Rivian Automotive Inc.'s stock, according to a regulatory filing Tuesday. Ford sold the shares Monday for $214 million at $26.80 a share, according to the filing.
How many Rivian shares does Ford have?
At the time of Rivian's initial public offering in November, Ford had a 12% stake in the company. In this latest transaction, Ford sold the 7 million shares for $26.88 each, for a total of roughly $188.2 million.
What percent of Rivian is owned by Ford?
a 10.5 per centFord currently holds nearly 94 million shares or a 10.5 per cent stake in Rivian. Ford Motor Company has sold its eight million shares of electric car maker Rivian Automotive Inc for $214 million, or $26.80 apiece, revealed the US automaker in a filing.
Can you buy a Rivian stock?
Rivian stocks (RIVN.US) are listed on the NASDAQ and all prices are listed in US Dollars. Its last market close was $31.94 – a decrease of 2.49% over the previous week....Rivian shares at a glance.Latest market close$30.19Earnings per share (TTM) more info button$-14.537 more rows
Does Ford still have an investment in Rivian?
Ford, which has invested a total of $1.2 billion in Rivian since early 2019, has a 12% stake that the company has said was valued at more than $10 billion in early December.
Who is selling Rivian stock?
Ford has offloaded more shares of EV startup Rivian, but still holds about 86.9 million shares, according to the Wall Street Journal. Rivian's stock price has fallen to around $24 per share, following a report from CNBC that Ford would be selling eight million of its shares in the company.
What will Ford Rivian stock do?
The media recently reported that Ford will sell 8 million of its shares in Rivian. To no surprise, the startup electric pickup truck maker's shares tumbled in premarket trading following the announcement.
Is Rivian worth more than Ford?
The $100bn car company you may not have heard of: It's never made a profit... but electric truck-maker Rivian is worth more than GM and Ford.
Is Rivian backed by Ford?
You see Ford, along with Amazon (AMZN), was an early backer of Rivian, which was founded in 2009 and went public last year. Ford invested $500 million in the startup company back in April 2019, when the two companies announced plans to develop electric trucks together.
How do I buy pre IPO stock?
Use a Specialized Broker Brokers and financial advisors often take part in pre-IPO trades. They may have acquired stocks that they are willing to sell or represent sellers who seek buyers. You can ask your current broker about pre-IPO stocks or use a broker that specializes in pre-IPO sales.
What will Rivian stock open at?
30.30Performance OutlookPrevious Close29.61Open30.30Bid28.97 x 3100Ask29.03 x 900Day's Range27.28 - 30.653 more rows
Will Rivian stock come back?
Despite slashing his price target for Rivian stock to $60 per share from $130, Ives remains confident that the Rivian story is “fixable” and shares will eventually rebound.
Key Points
Ford's investment in Rivian has surged in value, but it no longer serves any strategic purpose, as the two companies have canceled their plans to collaborate on vehicle development and production.
Collaboration plans fizzle out
Before the pandemic, Ford planned to build a Lincoln-branded crossover on Rivian's platform, complementing the EVs it expected to develop fully in-house. It canceled that project in April 2020, but the companies said at the time that they would develop a different Ford vehicle on Rivian's platform.
The case for cashing out
Following the cancellation of Ford's plans to collaborate with Rivian on an EV, CEO Jim Farley said Ford was still bullish about Rivian's future and wanted to maintain an investment in its budding rival.
Ford should bet on itself
Whereas Rivian will take years to scale its production, Ford plans to have the capacity to build 600,000 EVs annually by the end of 2023. The in-demand Mustang Mach-E and F-150 Lightning will account for more than half of that output. Production will continue to grow from there.
What is Rivian Automotive?
Rivian Automotive Inc (NASDAQ: RIVN) is the latest electric vehicle company to make its public debut. Following the highly anticipated IPO, investors piled into Ford Motor Co (NYSE: F ), which owns a 12% stake in Rivian, and Amazon.com, Inc (NASDAQ: AMZN ), which owns a 20% stake.
What is the Trojan horse?
During the Trojan War, the Greeks used a wooden horse to enter the city of Troy and win the war. Also of note, in computing, a Troj an Horse is any malware that misleads users of its true intent.
F Stock: How Ford Should Invest Cash From a RIVN Sale
Ford has many options available to increase F stock shareholder returns from an RIVN sale. For example, the company could pay a special dividend. But that’s not the best idea. Rather, Ford needs to re-invest the excess cash to pivot away from ICE vehicles.
Bright Prospects and a Price Target Warning
When it comes to Wall Street, analysts have a divided view on Ford’s fair value. Some analysts rate F stock as a hold or a sell, according to Tipranks. The average price target is $19.50.
The Takeaway on F Stock
All told, automotive investors should consider F stock as well as the above-mentioned firms. GM trades at attractive levels after falling in the last month. Meanwhile, Rivian is still a potential speculative short-term trade. The stock could climb from muted selling volume after the lock-up expiry.
