Stock in Rivian took a hit recently after the company announced that its earlier partnership with Ford to build electric vehicles will no longer hold.

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There had already been signals from both companies that their plan to help each other make electric vehicles might not stick.

The first reports knocked about 3% of Rivian’s shares, and by the end of that trading session, the company’s value was down about 8%.

But people close to the situation say not to read too much into the end of the partnership. Apparently there’s no bad blood.

Ford still maintains its position as a major investor in Rivian, with a 12% stake in the company. Keep in mind, at recent levels, the market value of Rivian is 20% more than that of Ford.

The announcement from Ford blames the 2020 pandemic for their decision not to go on with the initial plan "Given the current environment, Lincoln and Rivian have decided not to pursue the development of a fully electric vehicle based on Rivian's skateboard platform," said one Ford executive.

Some wondered if the two would simply pause their partnership rather than dropping it completely. When Ford was producing the Mach-E, it hit the pause button before finally getting the popular new model into the hands of buyers.

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It's clear that Ford is charting its own course in the race of EV dominance which is indicated by the recently announced $7 billion investment, the largest single investment in its history— in a new assembly factory and three new battery plants it will jointly own with Korean supplier SK Innovations. The factory, which will build electric pickups, will be in Tennessee, and the battery plants will be in Tennessee and Kentucky. It is part of Ford's plan to invest $30 billion in electric vehicles in the next five years, with the goal of 40% of its total sales being electric vehicles by 2030.

On the other hand, Rivian is not slowing down at all as they’ve been cranking out pickups since September. And the company is planning to expand its capacity from the money made from its stock sales. The future still holds a lot of opportunities for Rivian through the interesting improvements it has come up with in EVs, and at this rate, its shares may bounce back up to surpass its all-time high.
So, what do you think will happen to Rivian?
Let us know in the comments below.