Ford to Invest $500 Million into Tesla Rival Rivian: EV Shake Up!

    Author Maria OhlePosted on Categories AutosTags , , , , , , , , , , , , , , , , , , , , ,
    Ford

    One of the world’s largest automakers, Ford (NYSE:F), has just upped its game. In a move that may have Tesla (NASDAQ:TSLA) shaking in its boots, the carmaker will invest $500 million in electric-car startup Rivian.

    F stock is currently on the rise, up .20% and selling for $9.20 at the time of writing. The same can’t be said for Tesla stock, however; TSLA shares have slumped roughly 8% this week, and this news won’t make matters any better.

    Ford to Invest in Rivian

    Ford Motors will invest $500 million into Tesla rival Rivian. Based in Michigan, Rivian is to start production on a fully-electric pickup truck and a sports car next year.

    Both models are aimed to attract the same consumer base that is drawn to Tesla. They will both be battery powered and will be upmarket luxury vehicles retailing anywhere from $68,000 and up.

    As for Ford, the motoring giant is counting on this partnership to enhance its efforts in the electric cars sector. The company has not seen much success in its electrical operations, and shares have fallen approximately 9% in the last year. As more and more consumers opt for battery-powered cars, all major brands are adapting product lines to include a range of EVs. Despite Ford introducing electric vehicles, it has nowhere near held a candle to Tesla’s success in the US.

    The trouble at Ford was evident last year when it reported declining profits of more than 50%.

    >> SNAP Stock Extends Rally On Impressive Earnings

    Clean Sheet

    The changing dynamic in the auto industry is evident, and Ford and Rivian CEO R.J. Scaringe both see the need for zero emission vehicles and sustainable transportation. “We believe the world needs to electrify,” he said. Ford now sees the Rivian investment as a “clean-sheet approach” to electric vehicles.

    Ford isn’t the only major company to invest in Rivian. Retail giant Amazon (NASDAQ:AMZN) led a $700 million into the startup back in February.

    Do you think this strategic investment is what Ford needs to compete in the electric car market?

    Featured Image: DepositPhotos © kozzi2

    Author Maria Ohle
    About the author: Maria Ohle is a content creator spanning multiple subjects. She cites cannabis, business, and culture as her forte’s. Maria holds a degree in Drama and English and has a Diploma in digital multimedia. After two years of writing and working in Vancouver, Canada, she has returned home to Ireland to further her career. She is a dab hand at design as well as art and considers music to be man’s greatest invention.