New York (CNN Business) Shares of upstart electric truck maker Rivian plunged as much as 17% on Monday after the company said that it is no longer working with Ford to jointly develop vehicles.
Both Ford and Rivian had already signaled they were moving away from earlier plans to work together on EVs. But the news, first reported late Friday by Automotive News , sent Rivian shares down 3% in the last hour of trading Friday, and wider reports sent shares sharply lower Monday. By midday, Rivian shares were off their lows of the day. The stock rallied slightly in the last 15 minutes of trading but still closed down 8%.
Rivian and Ford both issued statements saying that their plans and needs had changed since the original collaboration was announced, and pointed out that Ford remains a major investor in Rivian, holding roughly 12% of its shares outstanding.
Ford had announced a $500 million investment in Rivian in April 2019 that included plans for joint EV development . But a year later it dropped plans to develop a Lincoln-branded EV pickup with Rivian, and no new plans had been announced.
"As Ford has scaled its own EV strategy and demand for Rivian vehicles has grown, we've mutually decided to focus on our own projects and deliveries," said a statement from Rivian. "Our relationship with Ford is an important part of our journey, and Ford remains an investor and ally on our shared path to an electrified future."