In a 13F filing with the Securities and Exchange Commission (SEC) Friday, the investment fund run by billionaire investor George Soros revealed a stake in electric vehicle (EV) start-up Rivian Automotive (RIVN 3.65%) obtained in the fourth quarter of 2021.
Soros Fund Management disclosed it held slightly fewer than 20 million shares of Rivian by the end of 2021. That stake was worth more than $2 billion at the time, but the stock has so far plummeted in 2022. That means investors today could get Rivian shares at an almost 40% discount to where Soros bought in. Some investors are jumping in today thinking that's a bargain, but it's worth taking a closer look.
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Though the stock popped today on the news of Soros' investment, Rivian shares are still down more than 36% year to date. Retail investors may feel like they are getting a nice discount compared to the Wall Street titan. After all, Soros is currently down about $700 million on that investment even after today's share-price pop.
And George Soros isn't the only large investor in Rivian. Amazon and Ford Motor recorded gains of $11.8 billion and $8.2 billion, respectively, in their fourth-quarter reports from investments made in Rivian prior to its initial public offering (IPO). Amazon didn't just take a stake in Rivian for investment gains, however. The company is also planning to receive up to 100,000 of Rivian's electric delivery vans to aid its quest toward a zero emissions fleet.
But even with the 2022 plunge in Rivian shares, the company is still valued with a market cap of nearly $60 billion. That valuation comes after the company announced it only shipped about 1,000 vehicles as of Dec. 31, 2021. Rivian is clearly priced for success as it aims to start manufacturing at scale and shipping its electric delivery vans, pickup trucks, and SUVs.
Investors should be prepared for volatility and potential setbacks even with a long-term outlook. The next update from the company to monitor its progress will come on March 10 when it reports its first-quarter financial results.
