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Rivian is an electric vehicle company that sells pickup trucks and SUVs that have an over 300-mile range. Discover whether it’s a good time to invest in RIVN or if competition makes your money better spent elsewhere.
How to buy shares in Rivian Stock
- Open a stock trading account - We recommend using Webull as it offers free stocks when you sign-up.
- Confirm your payment details - Add your payment method and fund your account.
- Research the stock - Search for the stock by name or ticker symbol - RIVN.
- Decide the amount of shares - Now it is time to decide how many shares you want to buy of Rivian.
- Purchase shares of RIVN - Buy the amount of shares you want with a market order or limit order.
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About Rivian Automotive, Inc.
Rivian Automotive is an American car company founded in 2009. They specialize in electric vehicles, making them an attractive option for the ever-growing environmentally-conscious consumer.
By 2028, Rivian Automotive aims to have carbon neutrality across its company for Scope 2 emissions and four years after that for Scope 3, which includes their suppliers and how their vehicle batteries get charged.
What to do with used car batteries is a hot topic in the electric car space, but Rivian has answers for it—customers can recycle the batteries or reuse them for stationary storage.
Furthermore, you can recycle Rivian’s interior vehicle material, all of which is vegan. Rivian’s founder is Robert J. Scaringe, who has a doctorate in mechanical engineering from the Massachusetts Institute of Technology.
The company has done an impressive job recruiting former Tesla employees, with Charly Mwangi and Nick Kalayjian now working for Rivian as manufacturing chief and head of engineering, respectively.
Rivian’s investors can check on the company's status at any time by visiting their Investors page. Here, you can see statistics about the number of preorders, planned annual capacity according to facility, and Amazon orders.
Should I Buy Rivian Stock?
Rivian stock is down over 50% from its all-time high, so it’s an excellent time to consider buying this stock. However, before you do, you should understand the bull and bear arguments for what direction this automotive company may go.
Is Rivian a good long-term investment? Will competitors like Tesla and Ford turn it into a joke of the electric vehicle market?
We’ll help you understand the nuances of Rivian’s potential future—and downfalls—so that you can determine whether it’s the right investment for you.
Rivian Stock Price Today
Rivian debuted on the Nasdaq in November 2021 with an approximately $67 billion initial public offering (IPO) value, putting it at about $78 per share.
That was a significant increase from the $57-$62 price per share it was going for the week prior. For comparison, Rivian’s rival Tesla, Inc (TSLA) had a $75 billion valuation at the end of 2019.
Today, Tesla is worth over $1 trillion. Needless to say, this gives investors hope that Rivian could follow—and hopefully exceed—Tesla’s success.
Positive qualities of Rivian that could lead it to much success in the future include:
- It's specialty is the pickup truck and SUV market space. In contrast, Tesla’s specialty is electric sedans.
- The vehicles are rugged and have a driving range of over 300 miles on a full charge, breaking the misconception that electric cars aren’t as hardy as gas guzzlers.
- Rivian sells their vehicles directly to the customer rather than relying on middlemen car dealers.
- Amazon and Ford both invested in Rivian, totaling approximately $10.5 billion in venture capital funding.
- Billionaire George Soros purchased 20 million shares during the fourth quarter of 2021.
- Rivian is already selling and delivering vehicles, unlike other electric vehicle startups, which are still working with an idea.
- They’ll be building a vehicle assembly and battery plant in Atlanta, with plans to open plants in Europe in 2023.
- MotorTrend announced Rivian’s R1T model as their 2022 truck of the year.
Furthermore, statistics are on Rivian’s side. Americans love their big vehicles, with SUVs and pickup trucks making the top five automobiles by sales in the United States.
Since Rivian sells its vehicles directly, investors will benefit from the company pocketing more profits. However, even if the company succeeds, it’ll likely take several years for investors to see significant gains, as was the case with its rival Tesla.
Despite the many positives that Rivian has going for it, there are some notable downsides. Perhaps most notably, there’s no shortage of companies who’ve tried and failed at outcompeting electric vehicle giants like Tesla.
The hurdles that Rivian faces that could prevent it from succeeding in the future include:
- There’s an increasingly saturated market for IPOs wanting to compete for a spot in the electric vehicle market.
- R1T and R1S vehicle models start around $70,000—out of the price range for the average middle-class consumer.
- Although Ford has a 12% investment in Rivian, in 2021, they declined to develop a joint electric vehicle, which they had discussed in 2019.
- In 2022, Ford will start selling electric F-Series pickup trucks with a 300-mile range but for $30,000 cheaper than Rivian.
- Tesla is also working on truck models, with its approximately $40,000 Cybertruck attracting attention.
- General Motors is also a strong competitor, with electric Silverados and Hummers already on the market.
- JPMorgan significantly reduced its price target for Rivian in January 2022. Their initial target was $104, and they dropped it to $84.
Ford is a massive competitor for Rivan, given that they’re a household name. Furthermore, unlike Tesla, Ford targets a similar market as Rivan—hardy, truck-loving folks.
What should make Rivian investors shake in their boots more than this, though, is that Ford’s electric vehicle prices fall in a range that more Americans can afford.
Despite Ford talking with Rivian to collaborate on an electric vehicle, they declined to move forward shortly after Rivian’s IPO.
Needless to say, this deflated some hopeful investors and made people question how large of a rival Ford may continue to become.
Rivian Automotive Competitors
Rivian is a woke company responding to many items essential to the modern-day consumer—clean energy, recyclable products, and a diverse and inclusive workspace.
Since its all-time high of $179.47, Rivian’s stock price has dropped more than 50%. Ford pulling away from its verbal promise to collaborate with Rivian contributed to this, along with investors recognizing that the electric vehicle market has a lot of competition.
We encourage you to do your due diligence to see if purchasing shares of RIVN is right for you. Should you choose to invest, it’s wise to choose a time when this stock is off its all-time highs.
Should you invest $1,000 in Rivian Automotive right now?
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