Rivian stock – is it safe to invest?
Many people have noticed Rivian stock, which is now the third most valued car company in the world. It went public a few weeks before I wrote this! Does this mean it’s a good idea to buy Rivian stock, or should you look elsewhere for investments?
It’s a must for all investors to check all they can before investing. You shouldn’t always follow market trends because they may fizzle out. More importantly, you will have to consider so many other factors, such as the market conditions right now. Fortunately, I’ll give you the basics you need to know so you have some idea of investing.
First, we’ll talk about more details regarding Rivian, such as its products and services. Then, we’ll talk about the recent events that happened around this EV company. That way, you’ll see why many people added this to their portfolios. Then, we will see the potential risks you should consider before investing in Rivian stock.
What is Rivian?
Rivian Automotive is an EV company based in Irvine, California, and Robert Scaringe founded it in 2009. After reading that, you might be comparing it to Tesla already.
What separates these is the types of electric vehicles they offer. Tesla’s EV lineup right now just looks like sedans, so they’re suited for city driving, and Rivian is better off-road.
It offers two SUV models at the time of writing, so its product lineup is more suitable for rough terrain. What’s more, they have a similar charging method to Tesla.
The Rivian charging network is spread across the United States. If your Rivian vehicle is running out of juice, you may top-up the battery just like you would at a gas station.
Rivian and the Tennessee Department of Environment and Conservation partnered together to announce the installment of Waypoints Chargers at Radnor Lake State Park. @TennStateParks pic.twitter.com/lHd3ANBMHHFEATURED STORIES
— Rivian (@Rivian) October 14, 2021
You may also connect your vehicle to an outlet at home. Similar to Tesla cars, Rivian provides a wall connector for this purpose. It does have one unique feature, though.
Rivian may provide companies with a fleet of electric vehicles so that they can deliver goods. What’s more, the client gets the FleetOS app to monitor those trucks.
This offer also includes charging stations and maintenance services, so clients get a reliable and sustainable fleet. Electric vehicles and business solutions, what more could you want?
Why are people investing in Rivian stock?
People got more reasons to invest in Rivian due to President Biden’s record-breaking Infrastructure Bill. It’s worth $1.2 trillion, and it’s for adopting renewables nationwide.
The bill contains a $7.5 billion budget for electric vehicles, so companies like Rivian are likely to benefit from it. Of course, you just have to look around to figure out why EV stocks are popular.
People are becoming more conscious about how they affect the planet, so more of them are buying electric vehicles. It’s a big reason why people buy Tesla cars right now.
That company grew a lot from this trend, but many didn’t invest in it. As a result, investors feel a bit of FOMO (fear of missing out) for not believing in this EV brand.
Now, these folks are on the lookout for the next Tesla, and Rivian might just be it. Big names like Amazon even bought a 20% stake in it in 2019.
All this hype allowed Rivian to grow $140 billion in value, making it the third most valuable car company in the world right now. Does this mean Rivian stock is a sure buy?
Read More: What Are The Best Solar Stocks Right Now?
Should you invest in Rivian?
We built Rivian to help shift the world toward sustainable transportation and energy. At this critical, once-in-a-planet moment, we want to do more. pic.twitter.com/qRWS14S4CS
— Rivian (@Rivian) November 10, 2021
Despite the large valuation, Rivian has zero dollars in revenue. It made its first truck run two months ago, but most of them were for Rivian employees.
In other words, it seems like Rivian stock is overvalued, meaning its current value doesn’t match its real-life performance. Another EV firm comes to mind when I see Rivian: Nikola Motors.
It also provided EV trucks to other companies, and it also generated zero revenue. Nikola’s business plan relied on refueling the trucks to earn money.
However, it’s not doing well lately because of various issues. Similarly, Rivian hit a few snags in its projects. For example, a recent joint development by Ford and Rivian was canceled.
Ford said it would focus instead on its vehicles because it’s seeing a lot of demand for its EVs. It will focus on scaling the new lineup itself.
Perhaps Rivian will perform well in the coming years, but we don’t have the proof right now. It just went public on November 9, 2021, but it hasn’t made money yet.
How to plan your investment
If you’re interested in learning more about our events or want to help us decide where we should go next, click on the link below to follow us. You’ll be the first to know about any events in your area.https://t.co/jWNR1iMTST
— Rivian (@Rivian) September 15, 2021
It will be up to you whether you should add Rivian stock to your portfolio or not. Look deeper into it yourself so that you can make the best decision.
Before you do, start by having an investment plan. Be sure of the reason why you want to invest in the first place. Are you looking for quick gains or future profits?
This will change the kinds of assets you will need. For example, stocks are a good choice if you’re willing to wait for months or years.
If not, most stocks won’t grow much if you sell them early, and you can’t always be sure they will pay dividends either. Once you have a plan, you may start looking at your options.
At the time of writing, Rivian (RIVN) stock costs $119.76 per share. Note that real-time stock quotes are usually delayed by 15 minutes due to various reasons.
Besides the price, you should check market indexes like the Dow Jones and the S&P 500 to gauge how the stock market is doing. What’s more, you must look at some of the factors outside the market:
- Worldwide events – COVID is one of the biggest factors to economies right now. Countries put various rules in place that had big changes for people’s behaviors.
- Consumer behaviors – Stock prices move based on how companies perform, and this factor depends on how people spend their money. For example, people buy more groceries to make sure they have food at home.
- Governments – Countries may put rules in place that may benefit or harm a company. Sometimes, it may have to close down in response.
This article is not meant to give investment advice, and that’s why I discussed the pros and cons of investing in Rivian stock. It’s up to you if you’ll invest or not.
You shouldn’t just pick stocks, though, because you have so many other assets out there. For example, you might want to buy bonds or ETFs.
You must make sure you reach your investment goals, so you must look for all the help assets. Read more Inquirer USA articles to learn more.