Think Rivian Stock Is Expensive? These 3 Charts Might Change Your Mind.

Core Viewpoint - Rivian Automotive is positioned for significant growth due to the introduction of new, lower-priced models, making its stock undervalued compared to market expectations [1][7]. Financial Outlook - Rivian's new R2 model, priced under $50,000, is set to begin production in early 2026, with additional models (R3 and R3X) expected to follow shortly [2]. - The company is anticipated to experience substantial improvements in financial performance as it scales production and sales of these mass-market vehicles [5]. Market Comparison - Historical data shows that when Tesla launched affordable models like the Model 3 and Model Y, their sales increased significantly, indicating a potential similar trajectory for Rivian [3]. - Rivian is projected to surpass Tesla in near-term sales growth due to multiple model introductions planned for 2026 and 2027 [5]. Profitability and Valuation - Rivian's gross margins are now comparable to Tesla's, although profit margins remain negative; this situation is expected to improve as sales scale [5]. - Rivian shares are trading at a price-to-sales discount of approximately 75% compared to Tesla, indicating a significant valuation gap despite the company's growth potential [7]. - With a market capitalization of $15 billion, Rivian's improving margins and sales growth suggest that the stock is not overpriced [7].