Ford's intention was to crush Rivian?

[rocketscientist]

Mercedes lost tens of billions selling their Tesla shares.

Great point

 

[rocketscientist]

I guess the truth is Ford will do what Ford needs to do. The EV market is new for them and they have every intention to have as much success there as they do with their F150. One thing Ford doesn't have. People see a Rivian truck and they want one, even if they didn't want a truck. It looks dang good and it thinks outside the box. Reminds me of how people reacted to the Model S.

 

[AllInev]

Ford Unloads Further 7 Million Shares of Electric-Vehicle Startup Rivian

https://www.wsj.com/amp/articles/fo...n-electric-vehicle-startup-rivian-11652536603

 

[E.S.]

Interesting. So they give up 7.44% of their shares in this 2nd round of sales. Them still owning 9.7% of Rivian's overall stock (87 million shares) is still an enormous amount of shares. I still don't think they'll dump it all, but at the same time I really don't care if they do. What I am more curious of is who did they sell to (if anyone specific)?

 

[zipzag]

Interesting. So they give up 7.44% of their shares in this 2nd round of sales. Them still owning 9.7% of Rivian's overall stock (87 million shares) is still an enormous amount of shares. I still don't think they'll dump it all, but at the same time I really don't care if they do. What I am more curious of is who did they sell to (if anyone specific)?

I'm sure in part because they can't have a board seat because of the inherent conflict of interest as a competitor.

Mercedes and Toyota went through a somewhat similar situation with Tesla.

I don't think Ford is putting much thought into their Rivian ownership. They probably made the decision to sell the shares and that process will continue.

 

[E.S.]

I don't think Ford is putting much thought into their Rivian ownership. They probably made the decision to sell the shares and that process will continue.

I agree that Ford didn't put much thought into their Rivian ownership. Like I said before, Ford's problem is 'Ford'. I'm still in the stance that they will hold onto some of the shares. I know they're kicking themselves for not getting into that Tesla piece of pie back in the day (and we all know how volatile Tesla's stock was the first 5-7 yrs). They miss out on this a 2nd time with Rivian and they'll just throw the mother of all hissy fits

 

[SANZC02]

I’m not sure what Ford’s end game is unless they just needed some immediate cash. Seems like they left a lot of money on the table. I think Rivian is worth more than Lucid but market cap has Rivian 6.5 billion lower. If Rivian goes up to mid 40’s that is 300 million left on the table.

Ford is still making money as they are selling well above their initial investment just interesting to see what companies do and try to understand why.

 

[zipzag]

I’m not sure what Ford’s end game is unless they just needed some immediate cash. Seems like they left a lot of money on the table. I think Rivian is worth more than Lucid but market cap has Rivian 6.5 billion lower. If Rivian goes up to mid 40’s that is 300 million left on the table.

Ford is still making money as they are selling well above their initial investment just interesting to see what companies do and try to understand why.

Most people, including investment professionals, don't believe you can make money picking stocks.

It's very likely that Ford's decision had nothing to do with guessing at the future price of RIVN. The current price is, after all, the consensus by experts of the value of the stock.

 

[Varuca-TX]

Most people, including investment professionals, don't believe you can make money picking stocks.

It's very likely that Ford's decision had nothing to do with guessing at the future price of RIVN. The current price is, after all, the consensus by experts of the value of the stock.

Ha! Consensus by experts .... it's nothing more than several weeks of negative press - much of it self inflicted- Rivian will exceed expectations this quarter and next and the glowing press coverage will push stock back to $75-$100 -

 

[zipzag]

Ha! Consensus by experts .... it's nothing more than several weeks of negative press - much of it self inflicted- Rivian will exceed expectations this quarter and next and the glowing press coverage will push stock back to $75-$100 -

So back to a higher market cap than Ford?

 

[trumphair]

Like I said, Ford is going to keep selling shares into any RIVN strength until they are out. Makes zero strategic sense for them to keep the stake.

I seriously doubt RIVN will get enough traction to pass up Ford in market cap again....the EV stock bubble has burst. The question now is will they be able to survive as an independent manufacturer? They have a good product but have made some dreadful mistakes (like handcuffing themselves on vehicle pricing for the next couple of years). They are in a tough business and will need to do better. Tesla survived (barely) with many advantages that Rivian will not be afforded.

 

[AllInev]

Barron's today:

The sale, completed on May 13, puts Ford below the 10% ownership level. There are about 893 million Rivian shares outstanding. “Once the beneficial ownership of the issuer’s securities falls to 10 percent or less, Ford would no longer be an insider required to file a Form 4,” explains accounting expert Robert Willens.

Looks like we'll need to wait until Ford's next quarterly report to know when/if they sold additional RIVN shares.

 

[trumphair]

Ford will still need to report transactions on a 13D within 10 days until they get below 5%.