Ford Motor (NYSE:) reported Q1 earnings and revenue that were roughly in line with the consensus estimates, though the carmaker’s net profit slumped due to its stake in electric vehicle company Rivian Automotive (NASDAQ:).

Analysts expected 37c to be the average share. FQ1 adjusted earnings per share were 38c. The period saw an increase in automotive revenue to $32.1 billion, which is slightly higher than the $31.13 billion estimate.

According to the unadjusted net loss, $3.1 billion was reported by automaker, Rivian. It also suffered a $5.4 Billion loss due to its Rivian stake. That’s down from the $3.3 Billion net profit from the prior year.

F’s NA operations generated $1.6billion, which is significantly less than the $2.9billion it earned in the same time last year. Pretax profits of $207 million were generated by European operations, a decrease from the $341 million reported in the previous quarter. China’s operations reported an even larger loss, $53 million, which is a decrease of $15 million from last year.

In Q1, wholesale volumes fell 9% compared to a year ago. Rivian’s market cap plummeted about 52% in the first quarter, halving Ford’s stake in the company to $5.1 billion from $10.6 billion.

F reiterated that the FY pretax adjusted FYEPS guidance was between $11.5 billion to $12.5 billion. In 2021, wholesale volume growth is expected to be between 10% and 15%.

Citi analyst Itay Michaeli says that F delivered a “modest Q1 beat.”

“We agree with Ford’s constructive view of price/sustainability (a key part of our prior tactical preference for Automakers > Suppliers into Q1), but the cadence required to achieve Ford’s 2022 guide (with Q1 Europe strong and China at a small loss heading into a tougher macro) suggests that the debate on future guidance risk likely won’t settle with these results. Still, we think Ford’s overall results/outlook will likely be taken as a modest positive given the macro backdrop,” Michaeli wrote in a note.

Goldman Sachs analyst Mark Delaney has lowered F stock’s price target to $18.00 per shares, down from $20.00.

“While we remain constructive on the company’s dedication to EVs and new technologies, we maintain our Neutral rating on the stock given cyclical risks for margins (we’d expect pricing to moderate as volume improves, mix effects, and increased costs), increased macroeconomic risk in Europe and the US that has been a headwind for the broader sector,” Delaney said.

By Senad Karaahmetovic