Here's Why Rivian Stock Is a Buy Before Feb. 20

Core Viewpoint - Rivian has significant long-term growth potential despite its current stock price volatility and ongoing losses, with an important earnings report expected on February 20 that could impact its valuation [1][5]. Financial Performance - Since going public in 2021, Rivian's annual sales have increased from a few hundred million dollars to over $4.5 billion, yet it has incurred a gross loss of nearly$2 billion [2]. - Rivian has consistently generated gross losses over multiple years, raising concerns about its ability to achieve profitability, especially as it continues to lose money on every vehicle sold [3][4]. Future Plans - The company plans to launch three new vehicle models priced under $50,000 starting in 2026, which could significantly expand its sales base but will require substantial investments [4]. - Rivian's current valuation is low, trading at 3.2 times sales compared to competitors like Lucid Group and Tesla, which trade at 10 and 14 times sales, respectively [4]. Profitability Outlook - Rivian's management has expressed optimism about achieving gross profitability by the end of the fiscal year, with a recent narrowing of gross losses from$477 million to $392 million [6][8]. - The CEO has indicated a focus on driving toward profitability, with expectations of modest positive gross profit by the fourth quarter, which could dramatically improve the company's prospects [8][9].