Back in 2019, Ford had invested $500 million in Rivian so that they could work upon developing a joint vehicle. Then, the companies stated that it would be for Ford’s high-end Lincoln brand, but those plans were dumped last year. At the time, Ford stated that the manufacturers would continue to look for alternative ways to work.
In an interview with Automotive News, EV startup Rivian CEO Jim Farley shared the reason saying, it was the complexity of matching Rivian’s electric architecture with Ford’s own software that led to the termination of the collaboration.
“When you compare today with when we originally made that investment, so much has changed: about our ability, about the brand’s direction in both cases, and now it’s more certain to us what we have to do,” Farley said. “We want to invest in Rivian — we love their future as a company — but at this point, we’re going to develop our own vehicles.”
Rivian, which has more market cap now than Ford, on Friday confirmed the termination of plans.
“As Ford has scaled its own EV strategy and demand for Rivian vehicles has grown, we’ve mutually decided to focus on our own projects and deliveries. Our relationship with Ford is an important part of our journey, and Ford remains an investor and ally on our shared path to an electrified future,” the company said in an emailed statement.
Shares of Rivian dipped about 2% during the after-hours trading session after closing at $128.60 apiece, up by 4.23%.
Ford’s stock closed its intraday at $19.39 per share, down by less than 1%.
On the dashboard of Encome, the social engagement for the stock of Ford amongst the users of Twitter and Reddit dropped by 30.85% combined with the fall in the trading volume by 42.70%. A total of 63.81 million shares of the stock exchanged hands on Friday, 17.5 million below the average of 81.31 million.