Investing in Rivian: George Soros Increases His Stake in Electric Vehicle Start-up as Stock Prices Remain Volatile

George Soros' investment in Rivian Automotive Inc. is a guardedly optimistic vote on the electric vehicle startup. The 19,835,761 shares, worth about $2 billion at the time, make him one of the most prominent investors in the company that has yet to produce a consumer vehicle. Rivian is 20% owned by Amazon.com Inc and is expected to provide the e-commerce giant with more than 100,000 electric trucks.

Rivian's December announcement that production would fall "a few hundred vehicles short" of its 2021 target of 1,200 due to supply chain constraints highlights the likely challenges in ramping up production. Despite this, customers have taken delivery of vehicles from Rivian.

Soros Fund Management reduced its holdings of big tech stocks prior to January’s market tumult while disclosing its stake in Rivian. It also trimmed positions in Amazon.com Inc. and Alphabet Inc., but revealed a new $13.3 million holding in Peloton Interactive Inc. The value of its U.S. equity portfolio jumped by $1.2 billion thanks to its stake in Cerner Corp., which saw shares jump over 50%.

It appears George Soros made an astute move buying into Rivian stock before 12/31, when it was still trading high. His decision may have pulled the price level out of the $50 range and back into the $60+ range. With his long-term view of investments, this could be a great opportunity for those looking for a good return on their money.

Rivian is a leader in the electric vehicle space, and its vehicles are expected to be competitive with Tesla's. The company has raised more than $8 billion from investors including Amazon, Ford Motor Co., Cox Automotive Inc., Sumitomo Corp. of America and Soros Fund Management LLC. It plans to use the funds for research and development as well as production of its R1T pickup truck and R1S SUV models.

The Rivian stock price has been volatile since it went public in December 2020 but appears to have stabilized around $60 per share recently after hitting highs near $80 earlier this year. This could be an attractive entry point for those looking for long-term investments in EV technology companies like Rivian or Tesla Motors Inc..

George Soros' investment into Rivian may signal that he believes there is potential upside ahead despite some short-term supply chain issues that have caused delays in production ramp up efforts by the startup automaker . His decision also shows confidence that EVs will continue their growth trajectory over time, making them increasingly attractive investments going forward .