While institutional investors aren’t required to file their first-quarter Form 13F until May 15, Baillie Gifford has, in usual fashion, filed its form ahead of the deadline. A 13F is a quarterly filing that reveals the equity and option trades of an institutional investor.
During the quarter, Baillie upped its stake in Rivian (NASDAQ:RIVN) stock by 714%, picking up 22.19 million shares compared to its Q4 ownership of 3.10 million shares. RIVN is now the firm’s 86th-largest position.
On another note, Baillie cut its stake in Rivian competitor Tesla (NASDAQ:TSLA) by 4.59%, selling out of 857,832 shares. The firm still owns 17.83 million shares, making the electric vehicle (EV) leader its ninth-largest position.
Baillie first bought RIVN stock in Q4 2021, picking up 3.55 million shares. That means that it bought the EV company in the same quarter that it had its initial public offering (IPO). Since then, RIVN is down by over 90%.
RIVN Stock: Baillie Gifford Increases Stake by 714%
Baillie operates as a long-term investor with a focus in the technology sector. The decades-old firm is based in Scotland and had over $240 billion in assets under management as of the end of 2023.
Baillie’s increased stake in RIVN is a positive for shareholders who may want to stick with the company in the long run in hopes of increased demand and profitability. The firm has an average 13F holding period of 19.94 quarters, or about five years.
Meanwhile, Rivian recently reported its first-quarter earnings. Its revenue grew by 82% year-over-year (YOY) to $1.204 billion, ahead of the analyst estimate for $1.17 billion. Unsurprisingly, the company is still unprofitable and reported an EPS loss of $1.48 per share, more than the analyst estimate for a loss of $1.15.
RIVN stock fell after the report, which was likely due to Rivian reiterating its 2024 production guidance of 57,000 vehicles. This didn’t sit well for shareholders, as Rivian delivered 57,232 vehicles last year, signaling a lack of production growth in 2024.
However, the company still has a few tricks up its sleeve. Its R2 SUV is slated to begin production during the first half of 2026 with an affordable price tag of $45,000.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
