Electric cars have become an increasingly common sight on America’s roads, and one of the biggest players in this market is Rivian. The automaker conquered the masses with its off-road-ready vehicles that can handle whatever you’re throwing at them, including vertical rock climbing.
Aside from jaw-dropping vehicle specs, Rivian also has investors wrapped around its finger. The company’s main strength is the lack of strong competition. Currently, Rivian is one of the few automakers proposing EV pickup trucks, a fact that leads investors to consider it one of the best investment opportunities at the moment.
But if you’re new to stock investments, you might want to know how much Rivian’s founder believes in his company. How much of Rivian does R.J. Scaringe actually own? Let’s find out who the major shareholders are and whether you should invest in this company.
Rivian might not be one of the biggest car companies in the world, but it is one of Tesla’s main rivals. The company was founded in 2009 by Robert Joseph “R.J.” Scaringe, an engineer and car enthusiast focused on creating a more sustainable transportation system.
Since its beginnings, the automaker focused exclusively on truck-style and off-road-ready products. Today, Rivian builds a pickup truck and a sports-utility vehicle for the consumer market, as well as delivery vans and a type of interchangeable “skateboard” chassis for the business market.
These innovative products compete with some of the major EV brands, including Tesla, Ford Motors, Lucid Group, and Polestar. With plans to build its own network of charging stations and more revolutionary vehicles, Rivian is a true magnet for investors. At the time of this writing, its market capitalization was about $16.8 billion.
How Much of Rivian Does R.J. Scaringe Actually Own?
R.J. Scaringe founded Rivian in 2009, and at the time, he owned the entire company. Initially, the first Rivian car was supposed to be a sports vehicle, but the project was shelved. Almost a decade later, in 2017, the automaker presented the prototypes for the first two vehicles, an electric pickup truck and an SUV.
In 2019, R.J. Scaringe managed to secure $1.7 billion in investments from Amazon and Ford Motors without actually selling a single vehicle. Rivian went public on November 9, 2021, mere months after launching its first EV in September 2021. Most of the company is now owned by investors, but R.J. Scaringe still owns about 1.4 percent of Rivian.
Who Are Rivian’s Major Shareholders?
While R.J. Scaringe founded Rivian and is currently its CEO, he only owns a small fraction of it. The main shareholders are multinationals and corporations who invested in the company.
Amazon is Rivian’s main investor and major shareholder. The American multinational tech company was the first to invest in Rivian back in 2019, and it currently owns about 16.67 percent of the company (158,363,834 shares, valued at around $2.7 billion).
Price (T.Rowe) Associates Inc.
The American publicly owned global investment management firm Price (T.Rowe) Associates Inc. doesn’t invest clients’ funds only. The company bought a large chunk of Rivian stock in December 2019 and is currently the second-largest shareholder after Amazon. The company owns about 7.72 percent of Rivian (73,292,635 shares, valued at $1.24 billion).
Vanguard Group Inc.
The Vanguard Group didn’t believe in Rivian from the start, but the investment advisor company has changed its mind in the meantime. In its August 2023 13F-HR form, Vanguard Group disclosed ownership of Rivian stock. Apparently, it owns around 6.68 percent of Rivian (63,436,687 shares, valued at around $1.07 billion).
BlackRock is another investment firm that owns a large portion of Rivian. According to the latest data, it owns around 4.86 percent of the company (46,140,882 shares, valued at around $780 million). Like Price (T.Rowe) Associates Inc., BlackRock bought its shares in December 2019.
Fidelity Management & Research LLC is another multinational financial services corporation that owns a part of Rivian. According to NASDAQ, FMR owns around 3.82 percent of the company (35,884,755 shares valued at around $580 million).
Is Investing in Rivian Worth It?
Rivian is a promising company and one worth investing in. Most of its major shareholders are investment and wealth management firms, so you can’t go wrong with this option if you want to invest in stocks. If you need more information, here’s what you need to know about Rivian’s revenue and share prices.
R.J. Scaring has spent a decade designing the perfect vehicles, and his efforts paid off. Rivian launched its first product in September 2021 and closed the year with an annual revenue of $55 million. In just a year, the company increased its revenue by 2914.55 percent — in 2022, it generated an annual revenue of almost 1.66 billion.
For the 12 months ending September 2023, Rivian managed to score a year-over-year revenue increment of 260.53 percent, with an annual revenue of $3.78 billion. With the R2S expected to hit the roads sometime in 2026 and a potential R2T expected to be presented in 2024, Rivian’s revenue and company value are unlikely to drop anytime soon. Moreover, if the company manages to create its own network of charging stations, the company value is only expected to go up.
Share Prices and Current Market Dynamics
Increments in the annual revenue and company success are not the only reasons to invest in Rivian. The main reason is the accessible price of shares. At the moment of this writing, Rivian stock prices range from around $16.57 to $17.22. The stock forecast is more than positive.
At the beginning of 2023, Rivian prices started at $11.42, and they are expected to end the year at around $20.11. That’s a +76 percent year-to-year change and a good enough reason to invest in Rivian.
How to Invest in Rivian?
There are two main ways to invest in Rivian — you can buy stocks in this single company or put your money in an index or exchange-traded fund (ETF) that includes Rivian. Investing in a single stock can be risky, even if the forecast is positive, so an index or ETF could be your best bet.
Another way to invest in Rivian is through mutual funds. Both ETFs and mutual funds allow you to diversify your portfolio and reduce the investment risk while still supporting the company you believe in. As for the ways to buy stocks or invest in ETFs or mutual funds, there are numerous apps or brokerage services you can use.
R.J. Scaringe is the CEO and founder of Rivian, but he only owns around 1.4 percent of the company. The main shareholder is Amazon, which currently owns just under 17 percent of Rivian. Other major shareholders include Price (T.Rowe) Associates Inc., Vanguard Group Inc., BlackRock Inc., and FMR, LLC.
In September 2023, Rivian declared an annual revenue of $3.78 billion, and investors expect the number to rise in the next year. With affordable stock prices and a positive forecast, investing in Rivian might help you reach your financial goals while supporting a green automotive company.
The image featured at the top of this post is ©Mike Mareen/Shutterstock.com.