Friday, October 7, 2022
News Rivian Share Prices Take a Hit After the Partnership with Ford is...

Rivian Share Prices Take a Hit After the Partnership with Ford is Confirmed to be Cancelled

Rivian fared worse than Ford following the annoucement that the two companies would no longer collaborate

  • Rivian shares were down 17% on Monday

  • The company is still worth $96 billion, which is 20% more than Ford

  • Ford shares where up slightly on Monday

Late last week, Ford announced it would no longer collaborate with EV start up Rivian for the development of future electric vehicles.

This news had quite an impact in the financial sector, since Rivian’s shares dropped in price by 17% on Monday.

The reduction in price had already started in the last trading hours of Friday, when Rivian lost 3 percent, but the confirmation by Rivian that indeed, it wouldn’t collaborate with Ford anymore sent its valuation down further.

The partnership was ended by Ford because the company thinks it is able to be competitive in the EV market without using the technology designed by Rivian.

This has the effect of preventing Rivian from benefitting from Ford’s experience and weight in the automotive industry, since the start up is only 12 years old, which is extremely young in this industry, where all major players have many decades of experience in car building, or a solid partnership with a more experienced company.

Investors saw this in a bad light for Rivian, hence the drop in value. Interstingly, they seem to trust Ford’s confidence in its ability to continue alone, since the shares of the blue oval were up slightly on Monday.

Despite this drop, Rivian is still worth $96 billion on the market, which is about 20% more than Ford and enough to remain the third most valuable automaker, behind Tesla and Toyota.

The idea that Ford can thrive on its own is not pure optimism however, since it plans to increase its EV production to 600,000 units a year, which would make it the second largest EV maker in the world.

Trending Now

Hennessey Performance Unleashes the Velociraptor 500 Bronco

  Just when you thought the Ford Bronco couldn't get any more badass, Hennessey Performance goes and reveals its latest creation - the VelociRaptor 500...

Faraday Future Raised $100 Million Ahead of the Launch of the FF91

The company reported having financial problems earlier this year. About $100 million has now been raised out of the required $325 million. The...

Winter Tire Season is Right Around the Corner

It’s October. The time has come to look at your winter tires Tip: Don’t wait until November to book an appointment or to...

Honda Unveils the Styling of the Prologue Electric SUV

The Prologue will arrive on the market for the 2024 model year This SUV was co-developed with General Motors It will be sized...

Toyota BZ4X and Subaru Solterra: A Fix has been found for the Recall

Both EVs are recalled due to a problem with wheels falling off Engineers didn’t take into account the additional weight and torque of...


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.