Breakingviews - Ford wisely trims its electric bets

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Breakingviews - Ford wisely trims its electric bets
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Ford Motor wants to shift its electric bets around. The $57 billion Detroit-based automaker needs to spend a ton of cash on an electric transformation that’s likely to only get more expensive . Selling a chunk of its stake in electric vehicle startup Rivian Automotive , as reported by CNBC, is a smart way to refocus its resources.

Rivian’s shares have sunk 78% since its blockbuster opening trade in November. The decline gave Ford a $5.4 billion paper loss last quarter. Still, at a reported sale price of $26.

90, Ford would still be at a comfortable profit to the price it paid for its 11.4% stake, built before Rivian went public, based onFord has placed a variety of electric bets, including its own Mach-E and electric F-150 launches, plus a partnership with Volkswagen

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