As Ford prepares to release its financial report for the fourth quarter of 2021, the car manufacturer has revealed that it expects to make an $8.2 billion gain from its investment in Rivian.
Ford has invested more than $800 million in Rivian and held a 12 percent stake in the electric vehicle startup when it went public in November 2021. Rivian has a current market cap of just under $66 billion with its shares trading at $73.16 each. The company’s value peaked in mid-November when share prices soared to $179.47.
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Speaking with Auto News, Ford chief executive Jim Farley said the automaker was happy with its Rivian investment and added that the company will reclassify a previous $900 million non-cash gain from Rivian into its special items.
Alongside its healthy Rivian profits, Ford expects to report a non-cash $3.9 billion full-year gain from an annual reevaluation of global pension and other post-retirement employee benefits. It will also record an additional $1.7 billion in costs associated with repurchasing and redeeming over $7.6 billion high-cost debt in the fourth quarter.
Had things gone a little bit different, it could have been General Motors that walked away with a healthy profit from an investment in Rivian. In fact, a report late last year revealed that Rivian chief executive R.J. Scaringe met with General Motors chief executive Mary Barra and president Mark Reuss in 2018 who were keen to invest in the startup. However, Ford’s investment terms were more appealing and it got the deal done.
