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Ford, Rivian End Plans to Develop Electric Vehicle

Ford and Rivian reportedly cancel plans to jointly develop an electric vehicle.

Ford  (F) - Get Ford Motor Company Report and Rivian  (RIVN) - Get Rivian Automotive, Inc. Class A Report have mutually agreed to cancel their plans to develop an electric vehicle.

Ford CEO Jim Farley told Automotive News on Friday that the two automobile manufacturers had decided not to enter into a joint electric vehicle development venture.

Farley tweeted on Thursday that Ford plans to be the second biggest EV producer in a couple of years, behind Tesla, with a goal of becoming the largest EV producer in the world. Ford two years ago launched the all-electric Mustang Mach-E, which is being sold on three continents.

Ford's chief executive wrote on Twitter that the auto company expects to produce 600,000 EVs a year globally by the end of 2023, which is two times its original plan.

Ford backed Rivian in April 2019 with a $500 million investment, while Amazon invested $700 million in February 2019.

Amazon  (AMZN) - Get, Inc. Report has a 20% equity stake in Rivian and had preordered 100,000 delivery vans to be delivered by 2030, 10,000 of those by 2022. Rivian plans to produce 25,000 vans a year by 2025 and build a preorder backlog of over 55,000 of its R1 vehicles by 2023.

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Rivian, which was launched in 2009, went public on Nov. 10 with an offering price of $78 a share and has a market cap of $111.6 billion at last check.

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Shares of Rivian on Friday dipped by 1.2% to $127.11 in after-hours trading. The stock had closed 4.2% higher in the regular session.

Ford stock slipped by 0.3% to $19.34 after hours. It had fallen by 0.9% in the regular session.

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