Ford extends 3-day surge to 23% as Rivian's big capital raise boosts the company's electric-car prospects

Ford extends 3-day surge to 23% as Rivian's big capital raise boosts the company's electric-car prospects
Rivian R1T.Andi Hedrick/Rivian
  • Ford soared as much as 12% on Thursday, extending its three-day surge to more than 23%.
  • The move higher materialized as hype over electric vehicles continues to push auto stocks higher.
  • On Wednesday, Rivian, an electric truck start-up that counts Ford as an investor, raised more than $2.65 billion at a valuation of $27.6 billion.
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Investor hype for electric vehicle manufacturers seems to have spilled over into Ford this week, with the stock surging as much as 23% since Tuesday.

The move higher materialized after Rivian, an electric truck start-up that counts Ford as a minority owner, raised $2.65 billion at a valuation of $27.6 billion on Tuesday. The raise will help Rivian push forward with its production schedule as it aims to begin delivering vehicles by the end of the year.
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Ford has an undisclosed stake in Rivian, having invested $500 million in the company in April 2019. Rivian's $28 billion valuation is catching up to Ford's, which was hovering at $44 billion as of Thursday.
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But Ford also has electric vehicle ambitions of its own. The company is on the verge of launching the electric version of its Mustang, the Mach-E.

After analysts at JPMorgan test drove the Mach-E, they said in a note on January 8, "Ford is showing more and more signs of becoming a credible contender in battery electric vehicles."

Ford is also developing an electric version of its pick-up truck, the F-150, though there is no official release date for the vehicle.
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Ford extends 3-day surge to 23% as Rivian's big capital raise boosts the company's electric-car prospects
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