(Reuters) -Ford Motor Co has cut its stake in struggling EV maker Rivian Automotive Inc to 1.15%, a week after the Detroit automaker reported a fall in profit and predicted a tough year ahead.
Shares of Rivian, which declined to comment on the matter, were down 3.6% in early trade.
Ford, which wrote down the value of its Rivian investment by $7.4 billion in 2022, has been paring down its stake amid production struggles at the Irvine, California-based company. Ford held a 11.4% stake in Rivian at the end of 2021.
The new stake, disclosed in a Wednesday filing, comes a week after Reuters reported Rivian’s plans to lay off 6% of its staff to cut costs amid falling cash reserves on the back of mounting economic worries.
Rivian shares also had a bleak 2022, losing about 82% of their value.
The company, which has been losing money on every vehicle it builds, narrowly missed its full-year production target of 25,000 units last year as it dealt with supply-chain disruptions.
(Reporting by Priyamvada C and Akash Sriram in Bengaluru; Editing by Dhanya Ann Thoppil)
