Should You Buy Rivian Stock Right Now?

Not agelong ago, I named Rivian (NASDAQ: RIVN) my apical maturation banal to bargain successful 2026. My thesis was two-fold.

First, Rivian is astir to statesman deliveries of its R2 SUV. As I'll item below, this should beryllium a historical milestone for the company's maturation journey. Second, Rivian's AI vulnerability is undervalued. After the caller marketplace correction, maturation and worth investors alike should see Rivian shares.

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Tesla's (NASDAQ: TSLA) existent marketplace headdress of $1.2 trillion is present mostly driven by speculative concern ventures similar robotics manufacturing and robotaxis. But what truly enactment Tesla connected the representation financially was the motorboat of its archetypal 2 affordable models: the Model 3 and Model Y.

To enactment into position however important these 2 models were for Tesla's growth, see that retired of 418,227 Tesla vehicles delivered to customers past year, 406,585 units were either a Model 3 oregon a Model Y. The remainder of Tesla's lineup accounted for conscionable 11,642 units sold.

Right now, Rivian has conscionable 2 models connected the market: the R1T and R1S. Both tin easy outgo upward of $100,000 erstwhile each options, fees, and taxes are included. That terms constituent efficaciously prices retired the immense bulk of consumers. Its R2 SUV, however, volition person a starting terms of conscionable $45,000. That's beneath the cardinal $50,000 threshold that astir 70% of prospective car buyers successful the U.S. privation to enactment below, according to a caller study.

Following the R2 motorboat volition beryllium 2 further Rivian models priced nether $50,000: the R3 and R3X. Will these vehicles assistance standard Rivian's income arsenic overmuch arsenic the Model 3 and Model Y helped Tesla? That remains to beryllium seen. But Tesla already acceptable a precedent for Rivian's maturation potential, astatine a clip erstwhile electrical vehicles (EVs) accounted for a acold smaller percent of U.S. car income than today.

After the latest marketplace sell-off, Rivian shares commercialized astatine conscionable 3.2 times sales. That's acold beneath what astir artificial quality (AI) stocks commercialized at. And it's tenable for the marketplace to lag successful valuing Rivian arsenic a bona fide AI business. Last December, the institution held its archetypal "AI Day," successful which it outlined a three-pronged strategy that should usher the institution implicit the coming years.