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Here's Why Rivian Stock Is a Buy Before Nov. 5
RIVNRivian Automotive(RIVN) The Motley Fool·2024-10-12 13:30

Company Overview - Rivian Automotive has seen its annual sales grow from millions to over 5billionsinceitsIPOin2021[1]−Thecompany′smarketcapitalizationhasdeclinedfromover5 billion since its IPO in 2021 [1] - The company's market capitalization has declined from over 100 billion to 10billionduringthesameperiod[1]−Rivianiscurrentlylosingaround10 billion during the same period [1] - Rivian is currently losing around 32,000 per vehicle produced, though this represents a 6,000improvementfromlastquarter[5]ProductDevelopment−Rivianplanstolaunchthreenewmass−marketvehicles(R2,R3,R3X)startingin2026,allpricedunder6,000 improvement from last quarter [5] Product Development - Rivian plans to launch three new mass-market vehicles (R2, R3, R3X) starting in 2026, all priced under 50,000 [3] - The company's electric vehicles have received high praise, with Rivian ranking as the top brand in a recent Consumer Reports survey [2] Financial Performance - Rivian's CEO has promised to achieve positive gross margins by the end of 2024, which would eliminate the current $32,000 gross loss per vehicle [6] - The upcoming Q3 earnings report on November 5th could provide significant updates on the company's financial position and capital needs [4][7] Industry Context - The EV market has faced challenges in 2024, with slower-than-expected sales growth affecting even Tesla [3] - EV production remains capital-intensive, requiring billions in funding for design, production, and marketing [4] - Many EV startups have struggled with funding, leading to bankruptcies in the sector [4]