Why would Ford invest in Rivian when it hurts it's core business?

[Rexus99]

Will see how Rivian pans out and yes it was stupid for Ford to invest no matter the windfall. Rivian is an existential threat and like Tesla, Rivian is not weighted down by ICE, Dealers and all the legacy grifters in between. See my post here https://www.mavericktruckclub.com/forum/threads/ford-ceo-speaks-about-tesla.4670/

Dictionary.com:
An existential threat is a threat to something’s very existence—when the continued being of something is at stake or in danger. It is used to describe threats to actual living things as well to nonliving thing things, such as a country or an ideology.
Really, an existential threat to the second largest auto maker in the US and 5th largest in the world? Really?

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[ccmjr77]

Just my opinion but, Ford has owned parts of many auto makers over the years and has partnered with others. This advanced technology and allows for joint products. It don't always work out. Ford owned jaguar, Volvo, part of Mazda, range rover and others in the past. This just let them invest in future products without the full burden of the investment.

 

[pointillistic]

Dictionary.com:
An existential threat is a threat to something’s very existence—when the continued being of something is at stake or in danger. It is used to describe threats to actual living things as well to nonliving thing things, such as a country or an ideology.
Really, an existential threat to the second largest auto maker in the US and 5th largest in the world? Really?

Stock market thinks so by valuing Rivian above Ford.

 

[OldSoulNewMaverick]

Rivian stock expected to open at $120. That's a bigger valuation than Ford, and even bigger than GM. WOW!

 

[pointillistic]

Rivian stock expected to open at $120. That's a bigger valuation than Ford, and even bigger than GM. WOW!

Let's say it again, Ford invested in a company that could be fatal for it's own business, I am betting against this but possibility exist.

 

[Ronaldo]

Why would Ford invest in Rivian when it hurts it's core business?
https://www.wsj.com/articles/rivians-60-billion-ev-challenge-to-detroit-11635860079

"Ford’s potential $6 billion windfall as a result of its early investment in Rivian is little compared with what it stands to lose if the startup lives up to its promise."

Ford was way behind on development on a EV truck. Rivian based their truck off of a F150. It was a natural match. If Ford came out with their lightning two years later it could have been game over. It was a smart move.

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