George Soros’ family investment office, Soros Fund Management, revealed a new stake in electric truck startup Rivian Automotive . When a notable investor buys into a company it can boost a stock. But the Soros stake isn’t helping Rivian shares very much in early trading Monday.
Rivian (ticker: RIVN) stock was down 2.3% in premarket trading Monday. S&P 500 and Dow Jones Industrial Average futures fell 0.8% and 0.7%, respectively.
Soros Fund Management’s quarterly investment filing with the Securities and Exchange Commission listed the new holding. Soros, as of the end of the fourth quarter, holds about 20 million shares, or roughly 2% of Rivian.
The stake was worth about $2.1 billion at the end of December, the period covered by the filing. But Rivian shares have had a tough start to the year, down about 43% year to date. Rising interest rates and higher-than-expected inflation have sapped investors’ willingness to hold more speculative stocks.
Rivian doesn’t have substantial sales just yet. The company is just ramping up production at its new assembly plant in Illinois. Wall Street expects Rivian to ship about 40,000 electric vehicles in 2022.
Shares could use a boost. The Soros stake isn’t the catalysts they need, however, because of two factors.
For starters, Soros was listed in Rivian documents as an interested investor at the the auto maker’s November initial public offering. This filing is, essentially, a confirmation that Soros bought in on the deal.
What’s more, Soros Fund Management also likes electric vehicles. Rivian isn’t the only EV maker held. The fund holds stakes in EV startup Fisker (FSR) and electric bus maker Proterra (PTRA), EV charging company Wallbox (WBX), electric motor magnet company MP Materials (MP) and EV battery technology provider Solid Power (SLDP).
The fund looks all-in on an electric-vehicle future. There is some room for traditional auto makers as well. Soros Fund Management holds a stake in General Motors (GM).
Write to Al Root at [email protected]
