© Reuters. FILE PHOTO: Employees works on an assembly line at startup Rivian Automotive’s electric vehicle factory in Normal, Illinois, U.S. April 11, 2022. REUTERS/Kamil Krzaczynski
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(Reuters) – Ford Motor (NYSE:) Co has cut its stake in struggling EV maker Rivian Automotive Inc to 1.15%, a week after the Detroit automaker reported a fall in profit and predicted a tough year ahead.
Shares of Rivian, which declined to comment on the matter, were down 2.5% before the bell.
Ford, which wrote down the value of its Rivian investment by $7.4 billion in 2022, has been paring down its stake amid production struggles at the Irvine, California-based company.
The U.S. car maker, which is set to pour billions into its electrification strategy, held a 11.4% stake in Rivian at the end of 2021.
The new stake, disclosed in a Wednesday filing, comes a week after Reuters reported Rivian’s plans to lay off 6% of its staff to cut costs amid falling cash reserves on the back of mounting economic worries.
Rivian shares also had a bleak 2022, losing about 82% of their value.
The company, which has been losing money on every vehicle it builds, narrowly missed its full-year production target of 25,000 units last year as it dealt with supply-chain disruptions.
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