How to Invest in Rivian

Analyzing the financial market and the Rivian stock catches your eye.

Suddenly, you want to know more about this company.

Well, you’re on the right page.

Rivian is an American electric vehicle manufacturer, one of Tesla’s main rivals.

This article will tell you how to invest in Rivian, as well as everything you need to know about the company’s market performance. Read on!

About the Company

Founded in 2009, Rivian Automotive Inc. develops software, electric vehicles, charging solutions, and services that help businesses lower their operational costs. Moreover, the company focuses on creating commercial vans, electric trucks (the R1T), and electric SUVs (the R1S).

Rivian is all about building a better future for the next generations — transitioning the world towards sustainable energy. For example, their batteries are created to be easily removed, then recycled or reused for other purposes. Also, the interiors of their vehicles are 100% animal leather-free.

And the one who came up with the idea of creating a company in the automotive industry that will work toward reducing fossil fuel emissions is Rivian Robert “RJ” Scaringe — Rivian’s founder and CEO.

Is Rivian a publicly-traded company?

Now, the answer you were looking for — yes, Rivian is a publicly-traded company. Its initial public offering (IPO) was on November 9, 2021. Since then, the company has been trading on the NASDAQ exchange. The Rivian’s stock symbol is RIVN.

As of October 2022, the company’s market capitalization was $28.56 billion.

What was the Rivian IPO price?

On November 9, 2021, Rivian made its debut with an opening price of $78 per share. The following day, the stock opened the trading session at $106.75 per share, reached as high as $119.46, and closed the day at $100.73 per share.

Rivian sold 153 million class A common shares during the initial public offering. Additionally, Rivian’s IPO raised $11.9 billion, causing a boom in the market. Meaning, Rivian had the largest IPO after Facebook, which went public in 2012 and raised $16 billion during its first day of trading.

Should You Invest in Rivian?

Those looking to buy Rivian stock should learn more about the company’s market performance and finances. Also, taking a grasp of the current stock performance could be of great importance.

Luckily, here we are to make that easier for you. So, let’s see whether the stock is a good buy or not.

Rivian stock performance

According to Macrotrends, the all-time high closing price for Rivian Automotive stock was $172.01 on November 16, 2021 — only a couple of days after the company went public.

But, as of October 22, 2022, the latest closing Rivian stock price was $32.33.

Here are more facts about the recent performance of Rivian stock:

• The 52-week high stock price was $179.47.
• The 52-week low stock price was $19.25.
• The average stock price was $53.15 for the last 52 weeks.

Note: The 52-week range shows the highest and lowest stock trading price over the past 52 weeks. Here, this 52-week period is ending on October 12, 2022.

Financial results

It’s vital for Rivian investors to research the company’s financial statements. The earnings, losses, press releases, and reports, among other financial results, can affect an investor’s decision whether to purchase the company’s automotive shares.

Thereby, we singled out some important highlights for Q2 2022, ending June 30, 2022. Take a look:

• The company generated a negative gross profit of $(704) million. The dynamic of the negative gross profit is set to continue in the near future, as Rivian is currently facing some labor and overhead costs. But, an improvement is expected as a result of an expansion of the vehicles’ production.
• The total operating costs were $1,004 million, approximately twice more than in the same period last year. The growth in operating costs is a result of an investment in people, vehicles, and technology programs.
• Net loss was $(1,712) million, compared to $(580) million for the same period last year.
• Adjusted EBITDA was $1,305 million, compared to $(559) million for the same period last year.
• Capital expenditures were $(359) million. They were lower compared to the $(431) million for the same period last year due to constant investment in the growth of Rivian Automotive Inc.
• Rivian ended Q2 2022 with $15,463 million in cash and equivalents.

Notably, Rivian only produced 4,401 and delivered 4,467 vehicles by the end of Q2 2022. But, the company’s target is 25,000 by the end of the year. However, Rivian generated $364 million in revenue from the delivered vehicles in the quarter.

Rivian spends money continuously on inside investments. In turn, shareholders expect the company to grow. Yet many investors are skeptical about making a Rivian investment because of the losses the company is experiencing.

Rivian stock forecast

As of October 2022, the average price target for RIVN was $49.14, with a high estimate of $70 and a low estimate of $25. These predictions are from the NASDAQ analysts who offer a 12-month price target for the Rivian stock.

So accordingly, the consensus for RIVN is a buy.

Your portfolio

Should you include Rivian shares in your portfolio?

The best call definitely is to have a diversified portfolio — a combination of various stock types that will reduce your overall risk.

But, when it comes to investing in Rivian, make the decision according to your portfolio needs. Despite Rivian having a buy status right now, this stance might change due to stock market volatility. So, always pay attention to Rivian’s share price performance.

Also, you need to consider how the automotive industry will fit into your portfolio. Even though Rivian has been operating for more than 10 years on the market, the electric car and renewable energy segments are still developing. Therefore, it makes them challenging and with a higher level of risk.

And, let’s not forget the fact that Rivian has recently recalled nearly 13,000 of its vehicles due to a problem with both front-wheel fasteners. All EDV commercial vans, as well as R1T and R1S electric truck types produced between December 10, 2021 and September 27, 2022 are compromised.

How to Buy Rivian Stock?

If you decide that Rivian stock is a good investment for you, then take a look at the possible options for buying it.

Online brokers/trading platforms

As Rivian stock trades on NASDAQ, you need to find a reputable online broker with access to this particular electronic exchange. Online brokers are licensed firms that allow investors to trade on the many trading platforms out there.

Once you choose the platform that suits your expertise, open an account and fund it. Then, find the Rivian ticker symbol — RIVN and buy the number of shares you want.

A friendly reminder from us — don’t forget to track your stock’s performance. Monitoring is a way to mitigate stock market risks and choose the right time to sell the shares.

Financial advisors

Hiring a financial advisor may be pricey, but the level of expertise they have is crucial. Especially when the stock market is volatile or the industry you want to invest in is unknown to you.

Even if you’re 100% familiar with the stock world, sometimes you won’t have the time to keep track of a stock movement. So, a little expert assistance can be helpful.

Here, we should also mention the benefits of using stock screeners. These stock filtering tools can ease your search for new portfolio additions and help you monitor their performance.

Final Thoughts

Maybe this guide was helpful enough for you to make the right decision, but still…

…always have in mind how volatile the stock market is.

So, we highly recommend doing thorough research before investing in RIVN.