If you‘re considering investing in electric vehicle maker Rivian Automotive (RIVN) during this period of volatility, an important question is: who actually owns Rivian‘s stock?
Understanding the major shareholders and insiders that own a company can provide critical insights into stability, control, and potential growth drivers when deciding to invest.
In Rivian‘s case, ownership is spread across some of the biggest names in tech and finance, highlighting the massive investor interest in this emerging EV player. Let‘s take a comprehensive look at who exactly owns shares of Rivian.
Overview of Rivian‘s Business
First, some quick background. Founded in 2009 by CEO RJ Scaringe, Rivian is focused on building electric trucks, SUVs, and delivery vans. While it only recently started delivering its first consumer vehicle – the R1T electric pickup truck – Rivian already has billions in funding and major partnerships in place.
Some key stats on Rivian:
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Raised nearly $10.5 billion in funding before IPO
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Produced around 1,015 vehicles in 2021, plans to produce 25,000 in 2022
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Has a 100,000 electric delivery van order from Amazon to fulfill by 2030
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Currently manufactures vehicles at its plant in Normal, Illinois with capacity of around 150,000 annually
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Plans new $5 billion manufacturing plant in Georgia for additional capacity
Rivian held its blockbuster IPO in November 2021, raising $13.7 billion to value the company at over $100 billion. However, execution challenges have led shares to tumble over 80%, making ownership breakdown an important lens.
Top 5 Institutional Holders of Rivian Stock
Institutional shareholders are organizations like mutual funds, banks, and hedge funds that own major stakes in public companies. Here are Rivian‘s 5 biggest institutional investors:
1. Amazon.com, Inc.
- Shares Held: 158,363,834
- Ownership Stake: 17.2%
- Value: $3.2 billion
Amazon has been a crucial partner for Rivian, leading a $700 million investment round in 2019. This led to Rivian‘s contract to produce 100,000 electric delivery vans for Amazon by 2030. Amazon also owned 20% of Rivian at IPO.
However, Amazon has cut its stake amid Rivian‘s stock slide. Regulatory filings show Amazon sold 10 million shares in May 2022 and recently sold more. But Amazon remains deeply invested in Rivian‘s success.
2. T. Rowe Price Group
- Shares Held: 116,604,944
- Ownership Stake: 12.7%
- Value: $2.36 billion
T. Rowe Price is one of the world‘s premier investment managers with over $1.3 trillion in assets under management (AUM). The firm is renowned for its agressive growth stock investing and substantial research capabilities.
T. Rowe has maintained its position as a top two Rivian institutional holder even amid broader market volatility, exemplifying its long-term conviction.
3. BlackRock Inc.
- Shares Held: 49,460,457
- Ownership Stake: 5.4%
- Value: $1 billion
BlackRock is the world‘s largest asset manager with an astonishing $10 trillion in AUM across equities, bonds, real estate and more. Due to its scale, BlackRock owns some share of virtually every major public company.
BlackRock initiated its position in Rivian during Q4 2021 as shares surged after IPO. It has maintained its top 5 stake even amid subsequent share sales.
4. The Vanguard Group
- Shares Held: 37,037,417
- Ownership Stake: 4%
- Value: $748.9 million
Vanguard is one of the world‘s largest investment management companies, renowned for its low-cost index funds. Vanguard has over $7 trillion in global AUM.
Vanguard has held its Rivian shares steadily since initiating its position after IPO. Low-turnover funds like Vanguard provide stability.
5. Capital Research Global Investors
- Shares Held: 35,597,775
- Ownership Stake: 3.9%
- Value: $719.8 million
Capital Research is a respected $2.7 trillion asset manager investing across public and private equities, fixed income and more.
Capital Research has maintained its top 5 Rivian stake, underscoring its long-term focus. Combining 5 holders above, institutional ownership accounts for 43.2% of shares.
Top Insider Holders: Amazon, Global Oryx, Ford, and CEO Scaringe
Insider owners like executives and directors hold special importance since they control day-to-day decisions and own stock outright.
Here are the 4 biggest insider owners of Rivian:
1. Amazon.com, Inc.
- Shares Held: 158,363,834
- Ownership Stake: 17.2%
- Value: $3.2 billion
In addition to being the #1 institutional owner, Amazon is Rivian‘s largest insider shareholder. However, Amazon has reduced its position from 20% at IPO as noted earlier.
2. Global Oryx Group Holding Co. Ltd.
- Shares Held: 113,934,082
- Ownership Stake: 12.4%
- Value: $2.3 billion
Global Oryx Group is an investment firm owned by Saudi Arabia‘s wealthy Jameel family. It invested $1.4 billion into Rivian in 2019 during fundraising before IPO.
3. Ford Motor Company
- Shares Held: 86,947,494
- Ownership Stake: 9.4%
- Value: $1.66 billion
The iconic automaker invested $500 million into Rivian in 2019 to collaborate on electric vehicles. However, Ford has since scaled back its position as well.
4. Robert J. Scaringe
- Shares Held: 4,511,767
- Ownership Stake: 0.49%
- Value: $86.1 million
CEO Scaringe owns a small percentage, but his stake still represents an enormous portion of his net worth. Company founders investing their own wealth provides powerful alignment with outside shareholders.
The Road Ahead for Rivian
Rivian has emerged as one of the most buzzed-about electric vehicle startups, attracting interest from top institutional and insider investors. However, realizing Rivian‘s immense promise has proven difficult as production ramps up.
Still, Rivian possesses key strengths:
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Billions in funding from prominent backers
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Amazon van order provides revenue visibility
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Additional manufacturing capacity coming online
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First-mover advantage in electric trucks
For investors, Rivian‘s roster of long-term shareholders offers stability amid volatility. While competition is fierce, Rivian‘s future looks bright if execution improves under visionary founder and CEO Scaringe.
So in summary, who owns Rivian? Some of the biggest names in investing – but it may take time for their thesis to fully play out. Understanding the shareholder landscape provides perspective on navigating this EV opportunity.