(RIVN), Ford Motor Company (NYSE:F) – Why Ford Is Terminating Its Joint EV Development Plan With Rivian?

Ford Motor Firm (NYSE: F), which is without doubt one of the early backers of EV startup Rivian Automotive, Inc. (NASDAQ: RIVN), is shelving its plan to develop an EV with the latter altogether.

What Occurred: As Ford steps on the fuel on its EV transition, the Detroit-based automaker has determined to desert it plans to collectively develop an EV with Rivian, CEO Jim Farley stated in an interview with Automotive Information.

Farley stated Ford expects to supply 600,000 autos per yr by the tip of 2023.

When Ford initially invested $500 million in Rivian in 2019, it envisaged growing a Ford branded EV that can include Rivian’s skateboard powertrain. In early 2020, the businesses stated they’re shelving the plans for a Lincoln-branded EV however would go forward with an alternate automobile based mostly on Rivian expertise.

The Ford CEO recommended within the interview that the corporate is now more and more assured in competing within the EV house by itself. One other handicap that compelled the going-solo choice was the complexities concerned in integrating the {hardware} and software program collectively.

Associated Hyperlink: 2 Causes Why Rivian Shares Are Spiking Larger

Why It is Necessary: Rivian shares debuted on Wall Road on Nov. 10 following an preliminary public providing at a bumper valuation of over $100 billion. The corporate’s sturdy debut and the next run up in shares have raised eyebrows over its valuation which has taken it previous the market capitalization of legacy U.S. automakers, together with Ford.

Rivian’s product pipeline consists of RIT, an EV pickup truck, which it started delivering to prospects in September. As of Oct. 30, the corporate produced 180 R1Ts and delivered 156 R1Ts, with the majority of them going to the corporate’s staff.

The corporate famous that on the finish of October, it had preorders of about 55,400 R1Ts and R1Ss. It expects to fill the preorder backlog by the tip of 2023.

Ford, for its half, has doubled on its EV technique and invested large {dollars} into its transition towards EVs.

“We respect Rivian and have had intensive exploratory discussions with them, nevertheless, either side have agreed to not pursue any type of joint automobile improvement or platform sharing,” Ford stated in an emailed assertion to media.

Rivian, in the meantime, confirmed that it’s a mutual choice to concentrate on every of their very own initiatives and deliveries, given Ford has scaled its personal EV technique and demand for Rivian autos has grown.

“Our relationship with Ford is a vital a part of our journey, and Ford stays an investor and ally on our shared path to an electrified future” a Rivian spokesperson stated.

Rivian closed Friday’s session up 4.23% at $128.60, whereas Ford closed down 0.87% at $19.39.

Associated Hyperlink: EV Craze Alters Auto Business Panorama: Rivian Now Extra Precious Than Volkswagen, Lucid Overtakes Ford’s Market Cap

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