Norges Bank announces that bought 2M Rivian shares when they were trading at $103

Norges Bank filed, on March 9th, a SEC form disclosing ownership of 1,993,212 shares of Rivian Automotive with total holdings valued at $206,676,000 USD as of December 31st, 2021. By the time the Bank bought the shares (last December), the stock was trading at $103.69, 63% down from Friday’s closing price of $38.05. The shares are now valued at 75.84 Million USD.

Norges Bank is Norway’s central bank and also manages the Government Pension Fund Global and the bank’s own foreign exchange reserves.

Source: SEC Filing
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Last week, the company reported Q4 and Full Year 2021 Earnings missing Wall Street’s expectations. The company lowered its production guidance for 2022 and expects now to deliver 25,000 vehicles (down from 40,000). After being down 6.35% during the trading session, the stock dropped nearly 13% After-Hours to $35.93 per share — a new All Time Low for the stock.

  • Adjusted loss per share: $2.43 vs. $1.97 a share expected
  • Revenue: $54 million vs. $60 million expected

“In the immediate term, we are not immune to the supply chain issues that have challenged the entire industry. Those issues, which we believe will continue through at least 2022, have added a layer of complexity to our production ramp-up” — Rivian stated. Read the full statement here.

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As of March 8th, Rivian has 83,000 R1 net preorders in the U.S. and Canada and 100,000 EDV units reserved from Amazon and counts 11,500+ employees.

“Over the course of fiscal year 2022, we plan to remain focused on ramping up production of both the R1 and RCV lines in Normal, as well as investing in our technology and product portfolio for future growth. We believe that throughout 2022, the supply chain will be a fundamental limiting factor in our total output for the Normal Factory and that our manufacturing equipment and processes would have the ability to produce enough vehicles to deliver over 50,000 vehicles across our R1 and RCV platforms in 2022 if we were not constrained by our supply chain. Our confidence comes from the demonstrated performance of our processes and equipment which is in line with our expectations. Despite this, due to the supply chain constraints currently visible to us, we believe we will have sufficient parts and materials to produce 25,000 vehicles across our R1 and RCV platforms in 2022. We continue to work with suppliers and look for engineered solutions to help us combat any anticipated supply chain issues.” — the company said.

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The company has been facing a number of challenges, from production ramp-up to orders cancelled after increasing its prices by 17% and 20%. Last week, Rivian announced that has raised the price of its R1T pickup by 17% and R1S SUV by about 20%. Increases in the cost of raw materials, inflationary pressure and the already known chip shortage issue are the reasons for this price increase.

“The Rivian R1T’s price is increasing 17% which will increase the base cost from $67,500 to approx $78,975. The R1S will see a whopping 20% price increase, bringing the new base price from $70k to about $84k. Like most manufacturers, Rivian is being confronted with inflationary pressure, increasing component costs, and unprecedented supply chain shortages and delays for parts (including semiconductor chips).”