And despite the stock̵[ads1]7;s fall in the last five months, it’s probably glad it did.
Then reality set in.
So far this year, Rivian shares are down 70% through Wednesday’s closing. So on Wednesday afternoon, Ford announced that it had taken a $ 5.4 billion pre-tax fee related to the investment in Rivian, which had lost about half of its value during the first quarter.
As a result, Ford reported a net loss of $ 3.1 billion. It would have made a profit of $ 1.6 billion at no extra cost.
That $ 1.6 billion profit, excluding special items, was slightly better than Wall Street’s forecasts, although it was down 44% from what it reported on that basis a year earlier. Car revenues of $ 32.1 billion fell by 4%, even though they beat forecasts by around $ 1 billion.
“The appeal of our new products is very clear, and customer demand is extremely strong beyond the supply constraints in our industry,” Farley said in an interview with investors. even stronger quarter. “
On Wall Street, which had feared the worst, investors shrugged off Ford’s allegations about Rivian and focused on better-than-expected results. And thus Ford shares rose by more than 1% in aftermarket.