Stock Market

Rivian Automotive (NASDAQ:RIVN) shareholders are certainly reaping the rewards of this bull market in the EV sector.

Indeed, shares of the EV manufacturer recently surged nearly 90% over just nine sessions. While RIVN stock has since given up some of these gains, it still has almost doubled from its $13.45 level on June 26.

Investors have seemingly been drawn to this stock due to favorable factors, such as the company meeting production and delivery goals. Rivian has reiterated its commitment to achieve the 50,000 annual production target. Now, the question is whether this can continue.

Indeed, achieving this goal won’t be easy. So, what will it take for Rivian to surge to the top in this EV race?

Customers Are Expecting Deliveries

Rivian Automotive CEO R. J. Scaringe revealed making internal combustion engine vehicles to “constructing a horse barn in 1910,” expressing his strong belief in EVs’ future.

While confident in Rivian’s production and delivery capacity, meeting the 2023 goal of 50,000 vehicles seems probable. However, achieving substantial sales within this year is not guaranteed.

In the current economic landscape and with Tesla’s price cuts, Rivian Automotive might encounter challenges selling its pricier R1T electric pickups.

The R1T, priced above $70,000, and the performance-oriented R1S SUVs have extended wait times. Pre-orders for the R1S placed by March 1, 2022, could see delivery this year, while the awaited budget-friendly R2 SUV is slated for a 2026 release.

Rivian Collaborates with BrightNight

In July, Rivian stock gained attention as it partnered with Starfire Mine and BrightNight to transform a former coal mine into a solar energy center named BrightNight Starfire Renewable Energy Center.

Rivian will initially purchase 100MW of renewable energy, enough to fuel around 450 million miles of green driving each year. Construction begins in 2025 with BrightNight leading the project and Rivian collaborating alongside The Nature Conservancy.

BrightNight CEO Martin Hermann stated that Rivian’s choice of the Starfire Renewable Energy Center demonstrates innovation and sustainability commitment.

By converting a coal mine, they showcase the influence of corporate power procurement. Rivian plans to acquire renewable energy credits from the center, subsequently offering a “carbon-neutral” option to its customers.

Patience is Key

Rivian’s future potential remains promising, yet vehicle delivery delays persist. Competing with Tesla’s eagerly awaited Cybertruck poses challenges.

For those cautious of current bullish sentiment, a strategy is to await RIVN stock to dip under $20 before considering a long position, aligning with Scaringe’s optimistic EV market outlook.

Rivian’s European venture alongside Amazon for electric delivery vehicles boosts investor confidence in its delivery capabilities.

A successful launch dismisses partnership doubts, hinting at a bullish trajectory for Rivian’s EV stock, complemented by R1T pickup truck popularity in the U.S.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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