Because Joe Biden has been pushing to deprive you of the internal combustion machines in favor of electric cars, Ford Motors invested a large sum of money in the electric car company, Rivian.
Ford cars and trucks have been selling well and bringing in the money at a regular clip. But, the investment has been a complete disaster.
Ford made a profit in the first quarter of this year, earning $2.3 billion dollars on their cars and trucks, but they lost $5.4 billion dollars on Rivian.
So, instead of showing a profit of $2.3 billion, they took a $3.1 billion dollar loss. In a press release issued this week, Ford reported $34.5 billion in revenue for the first quarter of 2022.
That is 5% less than the revenue they generated last year. It could be that they not focused on their own line, and instead, wasted too much time on Rivian.
Ford, along with Amazon, was an early backer of Rivian, which was founded in 2009 and went public last year. The two companies even announced plans to develop an electric pickup truck together; however, those plans were later canceled. Nevertheless, Ford retained its significant investments in the company.
Starting in April 2019, Ford invested $1.2 billion in the company and currently holds a 12% stake. For a while, the funding seemed to be paying off. After the initial public offering, Ford expected an $8.2 billion gain on its investment. But Rivian’s stock has been on a roller-coaster ride ever since, and now reality is setting in for investors, including Amazon, which took a $7.6 billion loss on its Rivian stake.
Yet in the face of significant revenue decline over EV volatility, Ford’s CEO Jim Farley restated his commitment to going electric in an earnings call Wednesday, though he claimed Ford would take a different approach than competitors.
“I want to make this very clear: Some companies seem to be pursuing a strategy of trying to match model-wise volume with eight or nine top hats — that’s not a winning plan in our view.”
“As we move forward, our EV designs will be progressive and they’re going to be aimed at bringing new customers to Ford and Lincoln. They will not be electric versions of our existing lineup.”
Ford is counting on Biden’s Executive Order that demands that 50% of all car sales starting in 2030. In that order, 50% of all car sales must be electric vehicles. President Trump will nullify that order because people should be allowed their choice of transportation.