Ford Motor Company (F) canceled its plans to co-develop an electric vehicle (EV) with California-based EV maker Rivian Automotive Inc., according to Reuters.
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Noatbly, shares of Rivian with a current market capitalization of $110 billion are up 28% since it went public on November 10. Ford continues to have a 12% ownership in Rivian.
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This is not the first time Ford has abandoned its joint venture with Rivian. Earlier, Ford had dropped its plan to build a new Lincoln from Rivian’s EV chassis and hardware.
Despite discontinuing the collaboration, Ford continues to target global production capacity of 600,000 by late 2023. To achieve the same, the company has ramped up its EV development and manufacturing capabilities.
Management Weighs In
According to Reuters, a company spokesperson stated, “We respect Rivian and have had extensive exploratory discussions with them. However, both sides have agreed not to pursue any kind of joint vehicle development or platform sharing.”
Wall Street’s Take
Ford has a Moderate Buy consensus rating based on 8 Buys, 2 Holds, and 2 Sells assigned in the past three months. The average Ford price target of $18.08 implies 6.76% downside potential.
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