Here's Why Rivian Stock Is a Buy Before Jan. 1, 2026

• Rivian is simply a bona fide AI stock.

• Sales could skyrocket adjacent twelvemonth acknowledgment to new, cheaper models successful its EV lineup.

• 10 stocks we similar amended than Rivian Automotive ›

Shares of Rivian Automotive (NASDAQ: RIVN) languished for astir of 2025. From Jan. 1 to Nov. 1, the company's banal terms hardly budged, though determination were sporadic ups and downs on the way. Over the past period oregon so, however, shares person skyrocketed successful worth by much than 40%.

I person been urging investors to instrumentality a person look astatine Rivian banal each year. In galore ways, the institution appears to person the imaginable to go the adjacent Tesla. Even aft the latest terms spike, shares inactive look to beryllium a semipermanent bargain for respective reasons, the astir important of which is expected to spot superior advancement successful 2026.

Take a speedy look astatine Tesla's valuation and you'll recognize that its banal is priced astatine a huge premium to astir each different electrical conveyance (EV) stock. It trades astatine a price-to-sales ratio of astir 17. Rivian, meanwhile, trades astatine conscionable 4.2 times sales.

There are galore reasons for Tesla's premium. The institution has a immense superior advantage, positive the champion marque designation successful the industry. But it besides has a starring presumption successful robotaxis, a marketplace that immoderate experts judge volition yet beryllium worthy much than $5 trillion.

The robotaxi marketplace looks similar a high-tech business. But it's overmuch much than that. Investors person been betting connected autonomous-driving stocks for much than a decade.

Progress has been slow. Cameras and detection devices outgo a batch of money, and real-world investigating has been constricted owed to information and regulatory concerns. But artificial quality (AI) has vastly accelerated the timeline successful caller years.

"There is simply a monolithic leap successful AI happening close now, and it is resulting successful smarter end-to-end AI systems that tin larn overmuch much efficiently, are interpretable, and tin generalize to each imaginable script connected the road," said Raquel Urtasun, the CEO of Waabi, a institution that specializes successful self-driving technology. "These advances effect successful autonomous vehicles with superhuman capabilities that volition heighten roadworthy information and alteration proscription arsenic we cognize it."

Tesla has wisely invested heavy successful AI, and investors person been keen to reward it for its efforts. In general, AI stocks person performed precise good successful 2025, truthful being lumped into that class has created nonstop gains for shareholders.

For astir of the year, Rivian was not considered an AI stock. But I repeatedly pointed retired however Rivian was besides investing heavy into AI, conscionable similar Tesla. Rivian scheduled an AI time successful aboriginal December, and shares seemingly started rising based connected expectations.