Is Rivian (RIVN) Stock a Buy Again?
The company continues to bleed money and is losing more than $40,000 per vehicle.
Mike Sakuraba graduated with double major of English and Economics. Part time writer, part time investor, full time dad. Mike loves writing about technology, sports, and investing.
2024-03-09 11:27

Rivian Fires Back: is RIVN Stock a Buy Again?
It’s been a rollercoaster of a month for shareholders of Rivian (NASDAQ: RIVN). Wait, let me rephrase that: it’s been a rollercoaster ever since the company went public in November 2021. Recently, it’s been less of a rollercoaster and more of just feeling sick. After its most recent earnings report, Rivian’s stock tumbled to all-time low prices. The company continues to bleed money and is losing more than $40,000 per vehicle. Rivian also provided lower guidance for annual deliveries and Tesla (NASDAQ: TSLA) CEO Elon Musk basically implied that Rivian could be bankrupt in a few months if it did not cut costs.Is Rivian (RIVN) Stock a Buy Again?
So why am I asking if Rivian stock is a buy again? On Thursday, the company made a few announcements that could change everything for the future.

Rivian revealed not one but two new vehicles in a surprise announcement on Thursday. These aren’t the high-end luxury trucks that the company is known for but two mass-market, economy vehicles that should go head-to-head directly with the Model 3 and Model Y from Tesla. The Rivian R2, R3 and the R3X are smaller, cross-over style SUVs that are fully electric with elements of the classic Rivian esthetic.

These vehicles harken back to older European-style vehicles. Not quite station wagons but not quite a smaller hatchback either. Either way, it promises to be a family-sized EV without the high-end price tag that has plagued so many electric cars.

Rivian (RIVN) Stock Outlook
Is this alone worth considering Rivian’s stock again? It’s a good start. The company also announced that it would be delaying construction of its new factory in Georgia which will save them more than $2.2 billion in costs. The price of the R2 is expected to be about $45,000 which is certainly appealing when you add in the incentives and tax credits.

The stock surged by more than 13% which was easily its best trading session of 2024. It could be the break that shareholders were looking for with the beaten-down stock. The R1S and R1T are nice and its partnership with Amazon (NASDAQ: AMZN) is a bonus, but to ever fully compete with Tesla, Rivian needed to begin producing a vehicle that could rival the Model Y.

If there’s one criticism of this bull case it is that the R2 isn’t expected to hit the showroom until the first half of 2026. So are we to accumulate Rivian shares until then? I have a hard time thinking about tying up my capital for that long without a high degree of certainty. Don’t get me wrong, Rivian has executed fairly well so far, especially compared to much of the competition. But in a market where Tesla is the king, how can I buy Rivian when I don’t even want to buy Tesla?

If you want to start a speculative position in Rivan I wouldn’t blame you. But don’t be surprised if another speed bump comes before 2026. This company is going to need money to build those new vehicles and the stock looks prime for some shareholder dilution in the coming months.

Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

Rate this article

Published On
2024-03-09 11:27

About the Author
Mike Sakuraba graduated with double major of English and Economics. Part time writer, part time investor, full time dad. Mike loves writing about technology, sports, and investing.

Analyst Ratings
Target Price$46.22
# of Analysts18
Last updated2022-12-17

You've read 1 article in the last year
..thank you for supporting us and for visiting our site. Unlike many other sites, The Dog of Wall Street is available for everyone to read. Our focus is to provide great content for free. Do you like what we are doing? Buy us a cup coffee. It is the fuel that keeps us going..

Is Tesla Back? Has TSLA Stock Finally Bottomed?
Tesla Stock Analysis: Robo Taxis to the Rescue?
By Mike Sakuraba | 2 weeks ago

2 Stocks to Buy During an April Pullback
Here are 2 stocks I’d buy during an April pullback.
By Mike Sakuraba | 2 weeks ago

TSM Stock: Is This The True Winner of the AI Race?
TSM’s stock has gained nearly 40% this year which is about half of NVIDIA has returned.
By Mike Sakuraba | 2 weeks ago

Best Proxy for Bitcoin: Coinbase or IBIT
In this article, we’ll compare the iShares Bitcoin Trust to Coinbase to see which is the best proxy for Bitcoin on the stock market.
By Mike Sakuraba | 3 weeks ago

2 Under the Radar AI Stocks to Buy
If you’re tired of reading about NVIDIA, consider these two AI stocks to add while the chip market cools off.
By Mike Sakuraba | 3 weeks ago

3 Bold Predictions for the Second Quarter
So here’s what I’m expecting for the second quarter and I’ll throw in a couple of bold predictions as well!
By Mike Sakuraba | 3 weeks ago

2 Stocks Cathie Wood Keeps Buying That You Should Too
In the world of retail investing, Cathie Wood and her Ark Invest fund are extremely polarizing.
By Mike Sakuraba | 4 weeks ago

2 Under the Radar Stocks to Buy Before Others
One of the keys to investing has always been to identify weaknesses in stocks before others. Buy it when everyone hates it and when everyone loves it you’ll reap the rewards. Sounds easy enough right?
By Mike Sakuraba | 4 weeks ago