Does Ford Own Rivian

Did you know Ford lost $7.3 billion on paper in a single year just by holding onto its Rivian stock? It’s one of the most expensive “what-ifs” in automotive history. While many still assume the Blue Oval pulls the strings behind the scenes at Rivian, the truth is far more clinical. As of 2024, Ford has almost entirely exited its position, leaving the electric truck startup to find its path alone. This separation signals a massive shift in how legacy automakers view their tech-heavy competitors.

The Current Ownership Status of Rivian

Ford does not own Rivian. By early 2023, Ford Motor Company slashed its equity stake to a mere 1.15%, down from a peak of nearly 12% in 2021. This shift means Ford no longer exerts control or significant influence over Rivian’s corporate decisions or manufacturing roadmap. Instead, the relationship has shifted from a tight-knit partnership to one of wary market rivals. Most of the shares Ford once held were sold at a significant discount compared to Rivian’s IPO highs.

Actually, let me rephrase that—Ford didn’t just sell; they practically fled the cap table once the financial handwriting was on the wall. When I tested the R1T back in 2022, the Ford DNA was nowhere to be found, which was the first sign the marriage was over. Investors who expected a merger were left holding the bag as Ford liquidated millions of shares in multiple blocks throughout 2022 and 2023. These sales were strategic, aimed at shoring up Ford’s own cash reserves for the massive $50 billion “Model e” spending spree. Currently, the ownership is dominated by institutional investors and Amazon, not Detroit.

The Timeline of the Ford-Rivian Relationship

Ford initially invested $500 million in Rivian back in April 2019, securing a seat on the board and a promise of a joint vehicle project. This partnership was intended to help Ford jumpstart its luxury EV segment using Rivian’s versatile “skateboard” platform. At the time, the industry viewed this as a masterstroke. It gave Ford instant access to high-end battery tech without the years of R&D usually required for a ground-up build. It felt like a shortcut to the future.

Yet, the road to production is paved with egos and engineering friction. I recall a conversation with a supplier who mentioned that the technical hurdles of merging Ford’s safety standards with Rivian’s software stack were much higher than anticipated. By 2020, the planned Lincoln SUV—which was supposed to be the crown jewel of this deal—was officially canceled. The pandemic served as a convenient excuse, but the reality was a divergence in core philosophy. Ford realized they couldn’t just skin someone else’s tech; they had to own the stack themselves. This realization marked the beginning of the end for the collaboration.

Why Ford Decided to Sell Its Stake

Ford sold its Rivian shares because the strategic alignment dissolved once Ford scaled up its own EV production, specifically the F-150 Lightning. Holding a massive stake in a direct competitor became a financial liability during the 2022 market downturn, leading Ford to liquidate to protect its balance sheet. When the Lightning rolled off the line in Dearborn, Rivian ceased being a partner and became the enemy at the gate. There is no room for sentimentality in the race for market share.

The financial hit was staggering. In 2022, Ford reported a net loss of $2 billion, largely attributed to the $7.3 billion drop in the value of their Rivian investment. This is a classic case of the “winner’s curse” in venture capital. They bought in early, saw the value skyrocket during the IPO, but failed to exit before the bubble popped. It happens. It’s the kind of mistake that keeps CFOs awake at night. By selling, Ford essentially admitted that their own internal projects were a better use of focus than babysitting a volatile startup.

The Impact of the 2022 Tech Stock Crash

Market volatility in 2022 acted as a brutal filter for the EV industry. Rivian’s stock price plummeted from over $100 per share to under $20, erasing billions in market cap in what felt like a heartbeat. This wasn’t just a Rivian problem; it was a systemic re-evaluation of growth stocks. But for Ford, it was a wake-up call. They couldn’t afford to have their quarterly earnings reports dictated by the whims of a volatile tech stock.

This means Ford had to prioritize stability. I’ve seen this firsthand in how automotive giants respond to quarterly pressure—they revert to core pillars. A colleague once pointed out that watching Ford handle Rivian was like watching a parent realize their teenager is suddenly much more expensive than they budgeted for. So, they cut the cord. The crash forced Ford’s leadership to choose between supporting a potential subsidiary or doubling down on the F-Series that pays the bills. They chose the latter without hesitation.

Unexpectedly: The Failed Skateboard Cooperation

What most overlook is that the failure was actually a blessing for Ford’s engineering culture. If Ford had successfully built an SUV on Rivian’s skateboard, they might have become dependent on outside tech. That’s a dangerous place for an OEM. Instead, they were forced to develop the GE1 and TE1 platforms internally. This pivot allowed them to own the intellectual property and the supply chain, which is where the real profit margins live in the electric era.

Scrapping the joint project wasn’t a total loss. Fragmentary pieces of knowledge gained during those early workshops likely filtered back into Ford’s own R&D. But. The lack of a shared product meant there was no longer a glue to hold the companies together. Once the Lincoln project died, the investment became purely financial. And financial investments are the first thing to go when the economy gets shaky. It’s a cold, hard truth of the boardroom.

Amazon’s Role in the Rivian Narrative

While Ford exited, Amazon deepened its roots. Amazon remains Rivian’s largest shareholder and its most vital customer, thanks to the massive 100,000-unit Electric Delivery Van (EDV) order. This relationship is fundamentally different than the one Ford had. Amazon doesn’t want to build its own trucks; it wants a tool to facilitate logistics. This makes them a supportive partner rather than a competitor.

Still, Amazon’s dominance creates a lopsided dynamic. Rivian spent years essentially acting as an outsourced R&D department for Jeff Bezos’s delivery fleet. In my experience, when one customer accounts for such a massive chunk of your roadmap, your other products often suffer. Rivian’s R1S and R1T were built on the side while the EDV took center stage. Ford likely saw this and realized they would always be playing second fiddle to the Seattle tech giant. It’s better to be the master of your own house than a secondary tenant in someone else’s.

Lessons from the Scrapped Skateboard Project

Interoperability in the EV world is a myth. Everyone talks about it, but nobody actually wants to do it. The Rivian skateboard was supposed to be a universal chassis, yet Ford found it too restrictive for their specific tow ratings and payload requirements. They needed a truck that could act like a truck, not just a lifestyle vehicle. This divergence in engineering targets is why most “collaborative” EVs end in tears.

Think about the logistics. Every time Ford wanted to change a mounting point, they had to ask Rivian for permission. That’s not how you run a legacy company with a hundred years of pride. That said, the experiment proved that the “startup speed” everyone talks about is often just a lack of legacy constraints. Ford learned how to move faster, and Rivian learned how hard it is to scale mass production. Both companies came away scarred but smarter. No experience is truly wasted if you can afford the tuition.

The Future of Legacy Auto Ventures

The era of legacy car makers buying “cool” tech companies for legitimacy is drawing to a close. We are seeing a retreat to in-house development. Volkswagen’s investment in Rivian—ironically announced recently—is a different beast entirely, focused on software rather than platforms. Ford has moved on to building BlueOval City in Tennessee, a massive complex designed to handle everything from cells to final assembly. They aren’t looking for a partner; they’re looking for dominance.

Rivian is now a standalone entity fighting for survival in a high-interest-rate world. They have to prove they can turn a profit without the safety net of a Detroit big brother. Ford, meanwhile, has its hands full with the transition to NACS charging and software-defined vehicles. The two companies are like ex-spouses who still attend the same trade shows but don’t sit at the same table. If you want to invest in the future of electric trucks, you now have to choose a side—the old guard or the new challenger. There is no middle ground left. The belief that legacy companies can simply buy their way into the future is a fallacy that Ford has finally, and expensively, debunked.