Why Rivian's Stock Is On the Rebound

Electric truck maker Rivian staged a mini-revival on the stock market Monday, propelled by the news that George Soros’ investment firm had snapped up nearly $2 billion worth of shares in the company late last year.

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Rivian shares climbed more than 12% at one point Monday morning, thanks in part to Soros Fund Management’s Friday disclosure that it had poured roughly $2 billion into acquiring 19.8 million shares of the company in the fourth quarter. The stock gave back some of those gains on Monday afternoon but still ended the day’s trading up more than 6%, at $62.65 per share.

The Irvine-based, Amazon-backed Rivian’s blockbuster November IPO briefly made it the world’s third-most valuable automaker, with a market capitalization that exceeded $150 billion at one point. But the electric truck manufacturer’s stock has since wilted dramatically; its losses have outpaced the broader market’s correction, thanks in part to a missed 2021 production goal. Rivian shares are down roughly 40% in 2022 so far and 65% from their November all-time high of almost $180 per share.

As a result, investors like Soros Fund Management have taken a substantial hit. The investment firm paid about $2 billion to acquire its nearly 20 million shares in Rivian—but since then, the value of its stake has reportedly slipped to less than $1.2 billion.

Besides Rivian, other Los Angeles-based electric automakers makers have also struggled on the markets lately. The likes of Fisker, Faraday Future and Xos are presently down about 64%, 77% and 84%, respectively, from their 52-week highs.