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2022-02-14 18:19

Soros Fund Management, which is George Soros family investment business, reported that they have purchased a more than $1 billion stake in electric-pickup producer Rivian Automotive Inc. Founded in 2009, Rivian Automotive is an American electric car manufacturer and automotive technology business.
Rivian, which began automotive deliveries in September of last year, has received a lot of attention for its EVs. The firm now produces three models: a pickup truck R1T, an SUV R1S, and a delivery van. So far, Rivian's pickup vehicle has garnered mostly good feedback. R1T has been named Truck of the Year for 2022 by the automotive publication MotorTrend.

What the SEC filing tells us
As per the filing with the Securities and Exchange Commission on Friday, Soros Fund Management purchased around 20 million shares of Rivian RIVN, for approximately $2 billion. Meanwhile, as of Friday's end, the investment was worth approximately half that amount, around $1.17 billion. Rivian and Co is up by 8.60% following the development.

Rivian shares have dropped 43% year to date, following allegations that it missed the mark of its 2021 production targets and that a battery-production arrangement with Samsung SDI Co. 00640, also dropped by -3.84%. Rivian Chief Financial Officer Claire McDonough said:

“The company intends to put growth ahead of profit for the time being, following its massive IPO in November.”

In the fourth quarter, Soros Fund Management whittled down its shareholding in Big Tech, selling a portion of its stake in Amazon and Google parent Alphabet Inc. as well as selling a portion of its stake in the Invesco QQQ Trust Series 1. It also disclosed a $13.3 million investment in Peloton Interactive.

Rivian is backed by Amazon.com Inc
With the great performance of its automobile, the corporation must now construct and distribute automobiles on a large scale. It's not as simple as it seems, but Rivian has already developed a high-quality product. By the end of last year, it had supplied 920 automobiles. Rivian also doesn't have a problem with demand. As of Dec. 15, it has more than 71,000 pre-orders for its trucks and SUVs combined. Furthermore, Amazon has placed an initial order for 100,000 delivery vans. Amazon also owns 18.1% of Rivian, demonstrating its dedication to the order and Rivian.

The company's supply of electric pickup trucks and vans is currently outstripping demand. This might remain the case for a few years until EV manufacturers ramp up production of these vehicles. Rivian may be able to use this as an opportunity to position itself as a long-term participant in this competitive industry.

Rivian is now trading at $63 a share versus its IPO price of $78 a share. Right after its debut on the Nasdaq Stock Exchange, shares had climbed to a high of $172, giving a market cap of over $100 billion to the electric car manufacturer versus $56.40 billion at present.