Essay by Eric Worrall
h/t Dr. Willie Soon; Who could have guessed that focussing investment on useless electric vehicles hardly anybody wants would lead to “devastating” financial losses?
Ford Reports Devastating Losses Thanks to Electric Vehicle Gamble
by Star News Staff | May 3, 2022
by Thomas Catenacci
Major U.S. automaker Ford blamed its sizable investment in electric vehicle (EV) company Rivian for its dramatic revenue decline in the first quarter of 2022.
Ford reported revenue of $34.5 billion between January and March, a 5% decline relative to the same period in 2021, and a net loss of $3.1 billion, according to the company’s earnings report released Wednesday. The Detroit automaker said its large investment in Rivian accounted for $5.4 billion in losses during the first quarter.
Rivian has posted massive profit losses of its own and its share price has plummeted nearly 70% over the last six months. The value of Ford’s roughly 102 million Rivian shares has fallen from about $17.5 billion to $3.2 billion since November.
However, Rivian CEO RJ Scaringe recently suggested that the supply chain for EV batteries is still far behind where it needs to be to achieve many of the goals pushed by Western governments, the WSJ reported.
The official Ford Statement on their financial loss is available here.
Let us hope US Secretary of Transportation Pete Buttigieg has fully completed his maternity leave, so he can fix those Rivian EV battery supply chain issues.
Of course, Buttigieg might need to magic up a whole lot more Lithium, but I’m sure Buttigieg and Biden have a plan for solving the Lithium shortage, right?
via Watts Up With That?
May 5, 2022 at 08:22PM