Ford to post $8.2 billion gain on Rivian investment

Ford to post $8.2 billion gain on Rivian investment

Ford Motor Co. said late Tuesday it will post an $8.2 billion gain in the fourth quarter based on its investment in Rivian Automotive Inc. after the initial public offering of the electric-vehicle maker in November.

The shares of Ford F and Rivian RIVN went up in the extended session after the news.

Ford was an early investor in Rivian, a maker of SUVs and electric pickup trucks that became a public company in November. Amazon is a well-heeled backer of Inc. AMZN, with the EV maker making electric delivery vans for Amazon.

Ford is detailing special items ahead of its fourth-quarter and full-year 2021 earnings report expected in February 3.

More electric pickup trucks are coming to market. The items are included in the GAAP net income and per-share earnings, but are not included in the non- GAAP adjusted earnings and adjusted EPS, the car maker said.

Ford also said it was recording about $1.7 billion in costs associated with buying back and redeeming high-cost debt in the fourth quarter, a move that it took to strengthen the company s balance sheet and reduce ongoing interest expenses. The auto maker reported a $3.6 billion non-cash benefit related to tax structure changes.

Ford's stock has rallied in recent sessions and is up 150% in the last 12 months, compared with gains of around 22% for the S&P 500 index SPX over the past year. On Tuesday, the stock was below its IPO price for the first time.