Rivian Automotive (NASDAQ:RIVN), one of the most exciting electric vehicle stocks that were once on fire, has since dipped quite a bit. Rivian went public this past November, and it generated $7.9 billion in the process. Shares surged but then sold off sharply. This sharp volatility can be very challenging for those in the stock market.
However, there is reason to believe things could be getting better for the company. Electric vehicle company Rivian Automotive promised to reach its production target this year. The company reported 1,227 total vehicle deliveries in the first quarter. They also produced 2,553 vehicles.
Rivian produced more than 1,000 vehicle models and sold 920 last year. Production began on its R1T pickup truck at the end of the third quarter.
The company produces electric vehicles, pickup trucks, and delivery vans for Amazon (NASDAQ:AMZN) in Normal, Illinois. Rivian said the production capacity for the facility is currently 150,000 vehicles. But there are plans to scale to 200,000 by 2023 eventually.
Rivian has said it will slash 2022 production in half to 25,000 vehicles in the wake of problems that limited its manufacturing capacity. Therefore, the delivery figures and the plans to scale production are just the shot in the arm needed to bring RIVN stock back to life.
Should You Invest in RIVN Stock?
At this time, buying into an unprofitable EV company can be tricky. Learn more about both companies and their strengths and weaknesses before investing your money to make the best investment decision.
In the case of RIVN, several aspects make it an interesting EV stock. One of the biggest reasons is that Amazon backs the company. The tech giant has a 20% stake in the EV company.
In 2019, Amazon announced it ordered 100,000 electric vans from Rivian, a closely connected company with Amazon. That means that they see this as an important step towards industry-wide sustainability goals and helps them stay on the cutting edge of tech.
Rivian is looking to grow exponentially. It will open another plant near Atlanta in 2024. Eventually, plans are in place to make battery cells and 400,000 vehicles a year. Rivian plans to invest $5 billion in a second factory that will produce 200,000 cars per year and expects this investment to help further its goals of being the go-to electric car maker.
Considering Rivian’s long-term development goals, recent strategic alignment with Amazon, and multi-plan expansion, RIVN stock is a buy.
On the publication date, Faizan Farooque 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.
