2 Reasons Why Now Is the Time to Buy Rivian Stock

Core Viewpoint - Rivian Automotive is currently undervalued compared to competitors like Lucid Group and Tesla, with potential for significant growth starting in 2026 as new models are introduced and production costs decrease [2][3][6] Group 1: Current Valuation and Market Position - Rivian shares trade at a discount of 2.7 times sales, compared to Lucid's 7.1 times and Tesla's 11.5 times [2] - The current discount is justified due to slower sales growth compared to Lucid and Tesla's capital advantages [3] Group 2: Future Growth Prospects - Rivian plans to begin production of the R2 midsize SUV in early 2026, priced around $45,000, followed by the R3 and R3X models [5] - The introduction of these new models is expected to attract tens of millions of new buyers, significantly expanding Rivian's market presence [5] Group 3: Financial Improvements - Rivian has already seen a 34% reduction in R1 manufacturing costs as it prepares for R2 production, indicating potential for improved gross margins [6] - Despite recent challenges such as the elimination of federal regulatory credits, long-term normalized margins are expected to rise [6] - With shares at multi-year lows, there is an opportunity for investment before these financial catalysts materialize [6]