1 Reason to Be Very, Very Excited About Rivian Stock Right Now

Core Viewpoint - Rivian Automotive is currently trading at a significant discount compared to competitors like Tesla and Lucid Group, primarily due to its underwhelming growth rates. However, projections indicate that Rivian's growth will accelerate significantly by 2026, driven by the introduction of affordable models [1][5]. Group 1: Valuation and Growth Comparison - Rivian's price-to-sales ratio is approximately 3, while Lucid and Tesla trade at around 7 and 15 times sales, respectively [2]. - Rivian's revenue growth since the beginning of 2025 is only 3%, compared to Lucid's 15% growth. For the current fiscal year, Rivian is expected to grow sales by 6%, while Lucid is projected to grow by 61% [3][4]. - Despite Tesla's sales declining by 5.1% since 2025, it continues to trade at a premium, highlighting a discrepancy in market valuation [4]. Group 2: Market Opportunities and Challenges - Rivian lacks a clear strategy for entering the global autonomous robotaxi market, which is projected to be worth $10 trillion. In contrast, Tesla and Lucid have established paths to participate in this market [4]. - The introduction of affordable models is crucial for EV makers, with nearly 70% of U.S. car buyers seeking vehicles priced under $50,000. Rivian plans to launch its first affordable model by early 2026, with two additional models to follow [7]. - The success of Tesla's affordable models, which account for over 90% of its sales, underscores the importance of this strategy for Rivian's future growth [7]. Group 3: Future Projections - Rivian is expected to see a significant increase in sales in 2026 and 2027, despite its current lack of growth and absence from the robotaxi market [8]. - The market's current undervaluation of Rivian compared to Tesla and Lucid may be a miscalculation, given the anticipated growth trajectory [8].