Rivian shares tumbled more than 17% as the EV maker’s 2023 output forecast missed expectations.
The Tesla rival warned of more supply-chain constraints in its Q4 and full-year earnings report.
Deliveries last year came in well below production, which was just below its target.
George Soros, Steve Cohen, and Jim Simons’ funds piled into Tesla and other trendy names last quarter, while Jim Chanos took aim at meme stocks. Here’s a roundup of 5 key trades.
Several elite investors took positions in Tesla and other trendy stocks last quarter.
George Soros, Steve Cohen, and Jim Simons’ funds bet big on Elon Musk’s car company.
Short seller Jim Chanos placed wagers against Tesla, AMC, and other high-flying stocks.
Some of the world’s top investors piled into Tesla and other trendy stocks last quarter, while a notable short seller bet against them.
George Soros, Steve Cohen, and Jim Simons’ funds bought shares of Elon Musk’s automaker in the three months ended December 31, Securities and Exchange Commission filings revealed this week. Meanwhile, Ray Dalio’s hedge fund boosted its bets on GameStop and AMC Entertainment, two classic meme stocks.
In contrast, Jim Chanos ramped up his wager against Tesla, and revealed a slew of bearish positions in AMC and other popular stocks.
Here are 5 big funds that placed bets on Tesla and other trendy stocks last quarter:
1. Soros Fund Management
Soros Fund Management scooped up about 42,000 Tesla shares last quarter. The purchases increased its stake by almost half to around 132,000 shares, worth over $16 million as of December 31.
George Soros’ fund also bought bullish call options on another 200,000 shares of the automaker. Those likely paid off, given the roughly 60% rise in Tesla’s stock price this year.
2. Point72 Asset Management
Steve Cohen’s Point72 Asset Management grew its stash of Tesla call options from 50,000 to 60,500 last quarter.
The New York Mets owner’s hedge fund also purchased 878,000 Tesla shares worth $108 million at the end of December, propelling Musk’s company into the top 60 of its nearly 1,500 holdings at the year end.
Moreover, Point72 built a new stake in GameStop, the video-game retailer that became the ultimate meme stock in January 2021. The fund’s 606,000 shares were worth $11 million as of December 31.
3. Renaissance Technologies
Jim Simons’ Renaissance Technologies raised its Tesla stake from 1,400 shares to 3.4 million last quarter. The purchases lifted the value of its position by more than 1,000 times, from under $400,000 to over $400 million as of December 31.
It’s worth noting the fund relies on algorithms to decide many of its trades and frequently changes its positions, limiting the insight offered by its quarterly filings.
4. Bridgewater Associates
Ray Dalio’s Bridgewater Associates almost tripled its stake in GameStop to nearly 39,000 shares last quarter. Its bet on the video-game retailer was valued at $712,000 at the end of December.
The billionaire investor’s hedge fund also nearly tripled its stake in fellow meme stock AMC to around 64,000 shares. Its position in the movie-theater chain was worth $261,000 at the year’s close.
5. Chanos & Company
Jim Chanos’ fund massively ramped up its bet against Tesla and placed bearish wagers against meme stocks, cryptocurrency companies, and high-flying technology stocks last quarter.
Chanos & Company held put options on 131,000 Tesla shares as of December 31, up from only 5,900 shares three months earlier. It also bought puts on AMC, Digital World Acquisition Corporation, Coinbase, Microstrategy, and DoorDash last quarter.
6/6 SLIDES
Tesla rival Rivian‘s stock price sank after its 2023 production forecast came in well below expectations and it issued its third recall in 16 months.
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The electric-vehicle maker’s shares were down 17% at $16.02 at last check in early trading Wednesday, after it warned that supply-chain bottlenecks would continue to hinder its output this year.
The guidance on output implies Rivian could see a significant cut to its 2023 revenue estimates, analysts said.
The company posted fourth-quarter revenue of $663 million, up from $54 million a year ago but still missing analyst expectations for just over $742 million, per Refinitiv data. Its quarterly loss per share of $1.73 was narrower than the Wall Street estimate of $1.94 per share.
The 2023 forecast would still be double the company’s production last year, which it said was 24,337 vehicles — slightly below its 25,000 guidance. But at the same time, its deliveries of vehicles last year were much lower, at 20,332.
“Supply chain continues to be the main limiting factor of our production; during the quarter we encountered multiple days of lost production due to supplier shortages,” Rivian said in a letter to shareholders. “We expect supply-chain challenges to persist into 2023, but with better predictability relative to what was experienced in 2022.”
Meanwhile, the automaker has recalled 12,700 of its vehicles, citing an issue with a sensor in the front passenger seat-belt system. It’s the third major recall since the company went public in November 2021.
At the same time, the sector faces a price war after leader Tesla cut prices for its models in the US and Asia.
Rivian CEO RJ Scaringe was asked about the potential for price cuts on a call with analysts following the earnings release. He said the company feels confident about the price tags for its flagship R1 product line, noting it had already adjusted prices in 2022.
“Our reservation process now gives us more flexibility to make adjustments to pricing over time. But we do see the introduction of some of the new technologies and some of the new features to allow us to actually grow ASP,” he said, referring to average selling price.
