In a strategic shift, Morgan Stanley has significantly bolstered its investment in Rivian, while trimming its holdings in Tesla for the third straight quarter, according to the latest SEC filings.
The financial institution reduced its shares in Tesla by 1% during the fourth quarter, bringing its stake down to 35,783,015 shares. This marks the smallest number of shares held by Morgan Stanley since 2023.
Previously, Morgan Stanley owned 36,146,709 Tesla shares at the close of Q3 2025, reflecting a 16.4% decrease from its holdings on June 30. In the second quarter, the firm further reduced its position by 4.7% from the 45,379,105 shares reported in Q1.
At its peak, Morgan Stanley’s Tesla holdings amounted to 45.4 million shares by the end of Q4 2024, with a market value around $4.9 billion. Over the next three quarters, the bank divested nearly 9.6 million shares, translating into a 21.2% reduction.
Despite these reductions, Tesla remains one of Morgan Stanley’s major equity investments. As of the latest count, 35.8 million shares were valued at $14.3 billion at the close of the trading week.
Throughout 2023 and 2024, Morgan Stanley had been actively purchasing Tesla shares, increasing its stake from 22.1 million shares at the end of 2022 to 40.2 million by Q1 2024 — an 82% rise during this period.
Rivian
Meanwhile, Morgan Stanley ramped up its investment in Rivian, holding 12,222,479 shares valued at $240.9 million as of December 31. This is a substantial increase from the 8,318,644 shares at the end of September.
This purchase of 3.9 million shares reverses a previous 30.3% reduction in the bank’s position and follows three quarters of declining holdings in the Irvine-based electric vehicle manufacturer.
Morgan Stanley initially invested in Rivian in December 2021, soon after the company’s IPO, with an acquisition of 3.6 million shares.
The firm consistently expanded its stake over the next year, reaching 6.3 million shares by Q3 2022. The position fluctuated throughout 2023 and early 2024, ranging between 6.1 million and 9.7 million shares. In Q2 2024, Morgan Stanley made a substantial investment in Rivian, increasing its holdings by 47.8% to 17.7 million shares — a record high for the firm.
However, this was followed by a series of reductions over the next three quarters: a 12.6% cut in Q3 2024, a 29.9% decrease in Q4 2024, and another 30.3% reduction in Q1 2025. By June 2025, Morgan Stanley’s holdings had decreased by 33% from its peak, with just 11.9 million shares.
In Q2 2025, the firm slightly increased its stake by 3.9% to 18.4 million shares, before a Q3 selloff brought the count down to 8.3 million shares, the lowest since late 2022.
The Q4 recovery, increasing the stake to 12.2 million shares, indicates a renewed optimism as Rivian prepares for the launch of its R2 mid-size SUV in spring 2026.
Rivian’s stock value has surged since year-end, driven by better-than-expected fourth-quarter earnings and promising delivery guidance for 2026. The stock closed at $17.73 on Friday, up 26.6% due to robust Q4 2025 financial performance and a positive sales outlook for 2026.
Institutional Ownership
According to Nasdaq data released on Monday, Rivian has 881 institutional investors collectively owning 705.1 million shares.
Amazon continues to be the largest stakeholder and main supporter, holding 158.4 million shares valued at $2.81 billion, unchanged from the previous quarter. Vanguard Group follows with 81.4 million shares worth $1.44 billion despite a slight 0.3% decrease.
BlackRock’s Q4 update revealed 50.4 million shares valued at $894 million, marking a 1.6% reduction. Baillie Gifford, an early backer of Rivian, decreased its holdings by 2.6% to 43.8 million shares, worth $776 million.
JPMorgan Chase made a significant purchase, increasing its stake by 288% to 22.1 million shares valued at $391 million. Capital International Investors also raised its position by 13.2% to 20.8 million shares, equating to $368 million.
Renaissance Technologies, a New York-based hedge fund, boosted its stake in Rivian by acquiring 4 million shares during Q4, a 32.4% increase, bringing its total to 16.4 million shares worth $290.7 million.
State Street Corp also increased its shares by 2% to 20.2 million, valued at $357 million. Norges Bank, Norway’s sovereign wealth fund, re-entered the Rivian market after fully exiting in Q3, purchasing 11.2 million shares worth $198 million — a 45.4% increase from its Q2 holdings.
UBS Group significantly reduced its stake by 28.6% to 13.9 million shares, valued at $247 million.
Several institutions have yet to update their Q4 portfolios. As of Q3, Two Sigma Investments held 16.8 million shares, Two Sigma Advisers owned 14.3 million shares, and Bank of America had 13.2 million shares.
Original Story at eletric-vehicles.com