After Ford announced a $3.1 billion loss on its 12% stake in electric vehicle automaker Rivian yesterday, Amazon has similarly announced a loss from the recent downfall of the carmaker’s stock price.
During Amazon’s Q1 earnings on Thursday, the online retailer announced it took a $7.6 billion loss as a result of its $1.3 billion investment in Rivian.
In the first quarter of 2022, Rivian shares plunged and lost more than 50% of their value. Ford holds a 12% stake in Rivian, while Amazon has about an 18% stake, according to FactSet data, reports CNBC.
Back in March, Rivian said it is expecting to produce only 25,000 electric vehicles and trucks in 2022, which is half the amount previously set in 2021 when it detailed its IPO.
Automakers are suffering from production woes due to the global semiconductor shortage and supply chain woes.
Aside from Tesla weathering the storm and delivering 310,048 vehicles in Q1, others have suffered from the global supply chain disruption. Rivian shares are down over 84% compared to their all-time high in November 2021.
