Does the Future Look Bright for Rivian Stock?
It has been tough sledding for Rivian Automotive (NASDAQ: RIVN) since going public in 2021. The stock is down 90% from all-time highs as the company struggles to generate a profit and grow deliveries for its line of electric vehicles (EVs). It is a testament to the bubble in EV stocks that occurred a few years back. Now, Rivian's valuation is back closer to reality.A 90% cheaper stock price may make some contrarian investors perk up. If the company can turn around and ride the EV wave to bigger scale, the stock may have a bright future ahead of it. Let's run the numbers and see whether Rivian stock can reverse its fortunes in the years ahead.Rivian has begun its life at as a manufacturer of EVs by focusing on larger and more expensive vehicles. These are the R1T truck, R1S SUV, and the Rivian commercial van sold to delivery providers such as Amazon. These products can be profitable, but with large price tags they have a limited addressable market.Continue reading
It has been tough sledding for Rivian Automotive (NASDAQ: RIVN) since going public in 2021. The stock is down 90% from all-time highs as the company struggles to generate a profit and grow deliveries for its line of electric vehicles (EVs). It is a testament to the bubble in EV stocks that occurred a few years back. Now, Rivian's valuation is back closer to reality.
A 90% cheaper stock price may make some contrarian investors perk up. If the company can turn around and ride the EV wave to bigger scale, the stock may have a bright future ahead of it. Let's run the numbers and see whether Rivian stock can reverse its fortunes in the years ahead.
Rivian has begun its life at as a manufacturer of EVs by focusing on larger and more expensive vehicles. These are the R1T truck, R1S SUV, and the Rivian commercial van sold to delivery providers such as Amazon. These products can be profitable, but with large price tags they have a limited addressable market.
