(Bloomberg) -- Ford Motor Co. expects to record a gain of $8.2 billion in the fourth quarter on its investment in Rivian Automotive Inc. after the electric-truck maker’s blockbuster initial public offering late last year.Most Read from BloombergMicrosoft Buys Scandal-Tainted Activision in Bet on MetaverseFourth Pfizer Dose Is Insufficient to Ward Off Omicron, Israeli Trial SuggestsCovid-19 Infected Lions Prompt Variant Warning in South AfricaStock Selloff Deepens as Treasury Yields Climb: Market
Rivian had soared as much as 53% to cross $100 billion in the biggest initial public offering of 2021, but the company's shares have dropped over 27% since then. Ford, an early investor in Rivian, currently owns about 12% of the California-based company and has itself been racing toward electrification in a shift away from traditional gasoline-powered cars as demand for green transport surges. Ford, which is reporting its fourth-quarter results on Feb. 3, also said on Tuesday that it would reclassify its $900 million first-quarter 2021 non-cash gain on the Rivian investment as a special item.
Ford Motor Company (NYSE: F) and ADT (NYSE: ADT) said they have formed a $105 million joint venture, called Canopy, to bring a new artificial intelligence (AI)-enabled vehicle security system to market. ADT is a significant partner and its services are a key piece of the offering, but Ford will hold a majority stake in Canopy, which was developed in the automaker's in-house start-up incubator. The Canopy system is something like a doorbell camera, but for a vehicle.