Where Will Rivian Stock Be in Three Years?

Core Insights - Rivian Automotive experienced a significant decline in revenue growth, dropping from 167% in 2022 to 12% in 2024, indicating major challenges ahead [1] - The company faces two primary challenges: the need to introduce more affordable car models and the impact of losing tax credits for electric vehicle (EV) manufacturers [1] Industry Context - Other automakers, such as Stellantis and General Motors, are also reducing EV production due to weakening demand and loss of tax credits, highlighting a broader issue in the EV market [2] - The overall sentiment in the automotive industry suggests a decline in enthusiasm for high valuations of car stocks, with established players trading at around 10 times earnings [5][6] Financial Performance - Rivian's stock has plummeted 90% since its IPO, yet it still holds a market value of over $16 billion while incurring significant annual losses [4] - The company reported a net loss of $4.75 billion last year and returned to gross losses of $206 million last quarter after two quarters of gross profits [10]