Should You Buy Rivian Automotive Stock While It's Below $17?

Core Viewpoint - Rivian Automotive is struggling to achieve profitability despite its ambitious plans and significant investments in software and autonomous driving technology [1][2] Group 1: Financial Performance - Rivian's stock has declined 90% from its all-time highs, primarily due to heavy cash burn and stagnation in vehicle output [2] - The company has a market capitalization of $20 billion, with a current stock price of $16.16 [3][12] - Rivian's free cash flow peaked at over $6 billion in negative territory in 2023, but has improved to negative $489 million in the trailing 12 months [8] - The operating loss remains substantial at $3.4 billion, indicating that the company is far from breakeven [9] Group 2: Production and Market Strategy - Initial vehicle deliveries reached a quarterly rate of 15,000, but have stagnated due to high price points of premium models [3][4] - To expand its market, Rivian plans to launch a more affordable R2 SUV in 2026, priced around $50,000 [4] - A new factory in Georgia is under construction, with U.S. government loans of $6.6 billion proposed to support development milestones [5] Group 3: Software and Autonomous Driving - Rivian is investing in software and autonomous vehicle systems, including a custom chip for its vehicles [6] - The self-driving software will launch this year at a subscription cost of $50 per month, potentially generating $60 million in annual revenue for every 100,000 subscribers [7] Group 4: Investment Considerations - Rivian's shares outstanding have increased by 44% since going public, raising concerns about debt and dilution risks [13] - Despite the potential for future growth, the current operating losses make the stock appear risky for investors at its present price [14]