RIVN Stock: How Does Elon Musk Feel About Rivian? We’ve Got the Tweets.

This week has been marked with the historic initial public offering (IPO) of a company already making moves to dominate the electric vehicle (EV) markets. Rivian’s (NASDAQ:RIVN) debut was hotly anticipated by consumers and investors alike. And so far, it hasn’t disappointed. RIVN stock shot up in its first day of trading.

The back of a silver Rivian (RIVN) pick-up truck.
Source: Miro Vrlik Photography / Shutterstock.com

Since then, the company’s performance on the market has been as green as the technology that powers its innovative products. Not everyone is so impressed by the new EV sensation, though. Yesterday, Tesla (NASDAQ:TSLA) founder and CEO Elon Musk laid out his thoughts on Rivian’s future via one of his favorite means of communication: tweeting.

Here’s what you should know moving forward.

What’s Happening with RIVN Stock?

Elon Musk’s tweet about Rivian was prompted by another user on Twitter (NYSE:TWTR) — an influencer who posed a question to him regarding the future of the EV industry. While the CEO responded that he hopes things go well for the space’s new player, the underlying skepticism was clear.

The tweet has received considerable engagement, but so far it hasn’t posed any considerable negative effect on RIVN stock. The new automaker’s shares are up more than 3% on the day as of this writing. Since its debut, RIVN stock has risen over 25%.

Musk Tweets Matter

Despite the eyebrows raised following the tweet, there’s no immediate reason to suspect it will lead to any declines for RIVN stock in the near future. True, Musk didn’t endorse Rivian, a company that promises to be one his leading competitors. However, he also didn’t say anything directly negative.

Still, it’s well-known that tweets from Elon Musk can send some prices up and others down. Cryptocurrency communities have found ways to spin even the vaguest of stances into positive trends, for example. This phenomenon was demonstrated by the social media team behind Floki Inu (CCC:FLOKI-USD) back in late October.

One could argue this type of attention from the most powerful man in EVs gives Rivian some credibility. But the company may not even need it. Rivian is backed by Ford (NYSE:F), one of its main competitors who also saw potential in the name years ago. All the same, a tweet from Musk can serve to keep companies in the headlines at the least, creating organic buzz. For a recently debuted company, that’s never a bad thing.

RIVN Stock: The Bottom Line

Musk may have led some investors to question Rivian’s ability to reach the production capacity needed for breakeven cash flow. However, there’s no immediate reason to assume the company won’t eventually be able to do so. Rivian’s market value following its debut put it at number five on a list of the largest IPOs of all time, well above Tesla.

While that doesn’t necessarily speak to production capacity, pre-orders also surged ahead of the RIVN stock IPO and haven’t stopped since. Elon Musk knows how difficult it is to make it in the field, but the industry he first redefined has changed since Tesla started out. Other EV makers will stand the test of time and, as of now, Rivian looks like a promising contender.

Everyone should have their eye on RIVN stock right now.

On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2021/11/rivn-stock-how-does-elon-musk-feel-about-rivian-weve-got-the-tweets/.

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