As electric vehicles (EVs) shift to become the primary focus for most automakers, vehicle manufacturing giant Ford says its already seen major gains on a recent investment into another startup automaker.
Ford said it made an $8.2 billion Q4 gain on its initial investments into Rivian, after the EV automaker startup debuted its R1T electric pickup in October, according to Reuters.
With Rivian having surged by 53 percent, even surpassing $100 billion USD in what was 2021’s largest initial public offering (IPO).
Rivian’s Georgia Plant to Span 20 Million Square Feet, Shows Site Plans https://t.co/76IHMPAdsU
— TeslaNorth.com (@RealTeslaNorth) January 13, 2022
Ford has around a 12 percent stake in Rivian, as the legacy automaker also begins moving its own fleet to include more EVs.
In addition, Ford said on Tuesday that it will re-categorize the $900 million Q1 non-cash gain it made on Rivian as a special item – which will increase the company’s adjusted earnings on the investment prior to taxes and interest.
The company also plans to record non-cash gains of nearly $3.5 billion in Q4, as well as $3.9 billion over the full year, citing renewed global pension and benefit measurements.
Last year, Ford announced plans to boost its investment into EVs to $30 billion USD by the year 2025.
Earlier this month, Ford also doubled its annual production target for the F-150 Lightning for a second time, signaling strong demand for the electric pickup.
