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Ford records $8.2 bln fourth-quarter gain from Rivian investment

Rivian had soared as much as 53% to top $100 billion in the biggest IPO of 2021, but shares of the company have fallen more than 27% since then.

Ford Motor Co. said Tuesday that its fourth-quarter results will include an $8.2 billion gain on its investment in Rivian Automotive Inc after the market-leading electric carmaker debuted in November.

The stock closed down 8.5% on Tuesday after hitting its lowest level since its IPO amid a tech sell-off on Wall Street.

Ford, the number one investor in Rivian, currently owns about 12% of the California-based company and is racing toward electrification in a shift away from traditional gasoline-powered cars with increased demand for green transportation.

Ford Q4, rivian investments

It has committed to investing more than $30 billion in electric vehicles by 2030.

In 2019, the 118-year-old Detroit automaker invested $500 million in Rivian, with plans to use the electric vehicle maker's platform to build a new Ford-branded electric vehicle, but the companies abandoned those plans in 2021.

Ford, which reports its fourth-quarter results on Feb. 3, also said Tuesday that it will reclassify its $900 million non-cash gain in the first quarter of 2021 on the Rivian investment as a special component.

The reclassification will change the auto industry's full-year adjusted earnings before interest and taxes (EBIT) previously projected to be between $10.5 billion and $11.5 billion, including earnings.

Ford also said it will book about $1.7 billion in costs associated with buybacks and recover more than $7.6 billion in high-cost debt in the fourth quarter.

It will also generate a non-cash gain of about $3.5 billion in the fourth quarter and $3.9 billion for the full year related to the remeasurement of global pensions and other post-retirement employee benefits.

Ford also said it will announce $3.6 billion in non-cash benefits, mainly due to changes to its global tax structure.

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