After a difficult start to the year, Rivian (NASDAQ:RIVN) is looking increasingly like a buy. The electric vehicle (EV) startup has been trending steadily downward for the past two quarters, but things are finally looking up. RIVN stock is rising today on multiple growth catalysts. The company reported Q1 earnings, beating Wall Street expectations on revenue and reported losses per share that came in substantially below projections. Additionally, Rivian CEO R.J. Scaringe recently stated that he is focused on securing more partnerships that go beyond his company’s deal with Amazon (NASDAQ:AMZN). While it hasn’t been a good year up to now, Rivian is moving forward. That means delivering growth for investors on the road ahead.
This isn’t to say that RIVN stock doesn’t still come with plenty of risk. The company is recovering from a volatile year that kept it mainly in the red. That will still make investors nervous. However, Rivian has shown that it shouldn’t be counted out, even as competition heats up within the EV market. Let’s take a closer look at the factors that make Rivian a good buy.
What’s Happening With RIVN Stock
Despite taking a dip this morning, RIVN stock is in the green today and continues trending upward. As of this writing, it is up more than 4% for the day and looks poised to rise even further. This momentum is clearly driven by the recent earnings, in which the company reported revenue of $661 million, beating out the projected $652.1 million by 1.4%. That’s a modest gain but still noteworthy. More impressive, though, is the fact that Rivian reported a loss per share of only $1.25 when Wall Street analysts predicted $1.59 million.
Some experts, such as InvestorPlace‘s Louis Navellier, have written off RIVN stock, citing the possibility of a strong cash burn. However, others feel that the good outweighs the bad when it comes to this controversial EV startup. Senior investment analyst Luke Lango has long been bullish on Rivian, describing it as having the potential to become the next Tesla (NASDAQ:TSLA) and soar to new heights in 2023. Lango sees several reasons why RIVN is among the best EV stocks to buy in 2023 that can overtake Tesla. In his words:
“This is a leader in a strong demand niche of the burgeoning EV industry. We know that the trucking niche of the automotive market is very large with very durable and strong demand drivers. Presumably, as that portion of the auto market gets electrified, there will emerge an equally large electric truck market. Presently, there is no clear leader in that market. But Rivian has a promising early start with a fantastic first-to-market truck that has among the best specs in the industry. This electric trucking market will support multiple winners, and we’re confident Rivian will be one of them.”
Rivian’s recent performance suggests that Lango’s bullish thesis is correct. It should be noted that the company’s current winning streak did not start with the Q1 earnings report. Rather, RIVN stock has been trekking upward for the past week. InvestorPlace contributor Bret Kenwell noted that Rivian would face its real test when it reported earnings. However, it is clear that the company has passed this test and is ready to start making up the ground it lost in 2022. This makes RIVN stock a buy before it begins its real comeback.
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.
