Rivian’s stock got a nice bump on Monday, going up 3.6% to $13.47, thanks to a thumbs-up from a Wall Street expert. Mickey Legg, an analyst from Benchmark, started covering Rivian and gave it a “Buy” rating with a price target of $18. In plain terms, he thinks the stock is a good investment and believes its value could grow significantly.
Why the Buzz?
Legg is optimistic about Rivian’s future. He sees the electric vehicle (EV) market growing a lot in the coming years as more charging stations pop up and EV prices become more affordable. Rivian, with its stylish all-electric R1T pickup truck and R1S SUV, is in a good spot to take advantage of this growth.
Right now, Rivian’s vehicles are on the expensive side, starting at over $70,000. But the company plans to launch more affordable models, called the R2 series, in 2026. These new models could attract more buyers and help Rivian expand its customer base.
Is Rivian Making Money?
Not yet. Rivian is still in the early stages of its journey, so it’s focused on growing and developing new products. The company is expected to sell about 51,000 vehicles in 2024, only slightly more than the 50,000 it sold last year. To make consistent profits, Rivian needs to sell a lot more cars—closer to 400,000 per year—which experts think could happen by the end of the decade.
The good news is that Rivian has over $6 billion in cash and support from partners like Volkswagen. This gives it some breathing room to keep building and expanding while it works toward profitability.
How Does Rivian Compare to Tesla?
Tesla is the big name in EVs, and it’s already profitable, making plenty of money. Rivian, on the other hand, is still a newcomer and has a lot of catching up to do. That’s why Rivian’s stock is cheaper compared to Tesla’s. Investors are betting on what Rivian could achieve in the future.
What’s Next?
Rivian’s stock has had a rough year, dropping 45%. Investors are also nervous about what might happen to the $7,500 EV tax credit if President-elect Donald Trump decides to remove it. Without the credit, EVs like Rivian’s could become less affordable for buyers.
Still, Rivian’s stock has bounced back by 23% since the November election. Many investors, including Legg, think Rivian can handle these challenges and continue to grow in the long term.
In short, Rivian is playing the long game. It’s not profitable yet, but it’s making big moves to position itself for a bright future in the booming EV market. For now, Wall Street experts like Legg see Rivian as a company with a lot of potential.
Best of luck