1 Reason Now Is a Great Time to Buy Rivian Stock

Core Viewpoint - 2026 is projected to be a transformational year for Rivian, despite current challenges in the electric vehicle (EV) market, including a decline in U.S. EV sales in the first half of 2025 [1][2]. Industry Overview - Global EV sales are expected to increase by approximately 20% in 2025 compared to 2024, although U.S. sales have only seen a modest increase of 1.5% year over year in the first half of 2025 [1]. - The U.S. market is facing intensified competition, with General Motors doubling its EV sales to about 78,000 in the first half of 2025 [4]. Company Performance - Rivian's deliveries are anticipated to drop this year due to various factors, including competition and consumer hesitance related to EV tax credits and tariffs [2][4]. - Rivian is focusing on preparing its Illinois plant for the production of the R2 SUV, which is crucial for the company's profitability [5]. Future Prospects - The R2 SUV is expected to have a production capacity of 155,000 units annually, with a cost of revenues per vehicle projected to be half of that for the R1 model [5]. - Management believes that the R2's lower cost structure will lead to a "quick path to positive gross profit," making Rivian stock an attractive option for investors [6]. Investment Considerations - While there is optimism surrounding Rivian's R2 model, there is also a risk that the stock could decline if the R2 does not meet expectations, categorizing Rivian as a high-risk investment [7].