3 Reasons to Buy Rivian Stock in 2026

The electric conveyance (EV) industry has mislaid overmuch of its luster arsenic authorities argumentation and user sentiment go little favorable. And with shares down by astir 88% from their all-time precocious of $172 (reached successful precocious 2021), Rivian Automotive (NASDAQ: RIVN) hasn't escaped the downtrend unscathed. The institution is inactive struggling to standard up its concern exemplary and amusement investors it tin make a pathway to sustainable profitability.

That said, contempt the challenges, Rivian investors person a batch to look guardant to successful 2026. The institution could spot thinning contention successful the electrical pickup motortruck marketplace and a pivot to perchance high-margin bundle and services, which committedness to assistance reignite growth.

On the surface, the U.S. EV manufacture is successful a unspeakable place. Reuters reports that wide income dropped 41% successful November owed to a confluence of factors, including the Trump administration's determination to extremity the $7,500 taxation recognition that antecedently applied to purchases of caller EVs. Investors shouldn't expect this to beryllium a short-term downtrend due to the fact that the White House has besides rolled backmost emissions standards connected gasoline-powered cars, which volition marque them much competitory comparative to electrical rivals.

Ford Motor Company has responded to the caller incentives by pivoting distant from EVs with a $19.5 asset writedown related to canceled models. The institution has besides announced plans to regenerate its afloat electrical F-150 Lightning pickup motortruck with a hybrid and scrapped its planned next-generation electrical motortruck (which was code-named the Ford T3).

Ford's F-150 Lightning competed straight with Rivian's R1T successful the marketplace for large, afloat electrical pickup trucks. And the larger company's departure could let Rivian to rapidly seizure marketplace stock and marque designation implicit the adjacent fewer years. These factors volition assistance Rivian stay competitive, adjacent if Ford decides to reenter the EV pickup motortruck marketplace successful the future.

Unlike accepted automakers, which thin to beryllium headquartered successful 20th-century concern hubs similar Michigan, Rivian decided to basal its operations retired of California, wherever it has entree to arguably the world's champion technology-related talent. Rivian's bundle prowess attracted the attraction of Volkswagen. And the 2 companies person joined forces for a joint venture to absorption connected processing bundle and electrical architecture.