Ford Motor Firm has offered a majority of its Rivian shares, in line with regulatory filings. Ford’s stake within the electrical car maker, which has been dropping steadily since Could 2022, is now at 1.15%, or 10.5 million shares.

The promote comes per week after Ford reported a $7.3 billion write-down on its Rivian funding final 12 months. Since February 2022, Rivian’s inventory has plummeted nearly 70%.

Ford has adopted this playbook with Rivian earlier than: Report a write-down, then promote to recuperate a number of the losses. Final April, Ford reported a $5.4 billion “mark-to-market loss” on its funding in Rivian. The next month, Ford offered 15 million shares in two separate transactions, bringing its stake within the EV maker beneath 10%.

Ford’s relationship with Rivian started with a $500 million funding within the precocious EV startup again in 2019. On the time, Ford additionally stated it could construct a car on Rivian’s “skateboard” platform. The legacy automaker canceled these plans in November 2021, citing a shift in course towards constructing its personal lineup of EVs. 4 months later, Ford elevated its in-house electrification funding to $50 billion by 2026, up from the earlier $30 billion by 2025. The automaker additionally stated it could run its EV unit as a separate enterprise from its combustion engine enterprise.

Different firms, like Amazon, have reported a number of losses from their funding in Rivian. Final week, Amazon reported a $2.3 billion valuation loss in its Rivian inventory, which brought on successful to its earnings.

Why are firms paying the worth for investing within the promising, if not troubled, EV firm? Recall that Rivian’s inventory hit a excessive of $179.47 per share earlier than falling to the $19.62 it’s at at the moment.

Rivian’s inventory is down 2.29% in afternoon buying and selling following reviews of Ford’s sale.