Ford Motors admitted this month that its huge gamble on electric vehicles caused it to lose $3.1 billion already this year.
The Detroit giant sunk $5.4 billion in its newest electric vehicle (EV), the Ford Rivian, during the first quarter this year. And it was one gigantic loser.
Ford reported revenue of $34.5 billion between January and March, a 5% decline over the same period in 2021, and a net loss of $3.1 billion, according to the company’s earnings report released on Wednesday.
“A net loss of $3.1 billion was primarily attributable to a mark-to-market loss of $5.4 billion on the company’s investment in Rivian,” Ford said.
Per the Daily Caller:
Rivian has posted massive profit losses of its own and its share price has plummeted nearly 70% over the last six months. The value of Ford’s roughly 102 million Rivian shares has fallen from about $17.5 billion to $3.2 billion since November.
“The capability of this business is much stronger than what we were able to provide in the quarter,” Ford CFO John Lawler said Wednesday, The Wall Street Journal reported.
Rivian, a California-based company founded in 2009, went public in November, according to the WSJ. Investors quickly scooped up shares of the startup EV maker at the time, but recent poor performance has driven many investors away.
In the final three months of 2021, Rivian reported a net loss of $2.5 billion.
Rivian CEO RJ Scaringe also delivered a dire warning to car companies looking to push these unwanted, money-losing EVs. He noted that the supply chain couldn’t help EVs replace gas-powered cars if they wanted to. In particular, the gigantic batteries the cars use simply can’t meet demand.
“Put very simply, all the world’s cell production combined represents well under 10% of what we will need in 10 years,” Scaringe said last week as he talked about any increase in EV production. “Meaning, 90% to 95% of the supply chain does not exist.”
They shouldn’t worry, though. No one wants these pieces of garbage.
Cross-posted with iPatriot
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