In the past, I’ve issued warnings about electric vehicle (EV) manufacturer Rivian Automotive (NASDAQ:RIVN). However, I try to be fair and balanced. Maybe, there’s a bull case to be built for RIVN stock.
After all, Rivian Automotive’s willingness to take risks and try new approaches is commendable. So, I’m going to accentuate the positive today.
I, along with other InvestorPlace contributors, have already discussed Rivian Automotive’s adoption of Tesla’s (NASDAQ:TSLA) EV charging standard. That’s a favorable development, but it’s not enough for me to recommend investing in Rivian. However, there are other news items pertaining to Rivian Automotive that might appeal to speculative, risk-tolerant traders.
Could RIVN Stock Actually Be a Buy?
Right now, I’m going to resist the temptation to mention that Rivian Automotive is an income-negative business. I also won’t mention Rivian’s removal from the Nasdaq 100 index, effective June 20. Finally, I will make sure not to bring up Rivian Automotive’s rising cost of revenues.
See? I’m only focusing on the positive developments with Rivian Automotive today. That’s easier said than done, especially when Rivian rarely updates its investor relations news page.
Thankfully, there are other ways to find out what’s going on with Rivian Automotive. For example, the company tried out something that’s rarely seen among major automakers: bypassing dealerships and selling vehicles directly to consumers, right outside of a production facility.
That’s right — Rivian Automotive reportedly sold R1T electric pickup trucks outside of the company’s factory in Illinois. Now, some critics might conclude that Rivian must have an excess of R1T inventory that it’s desperate to get rid of.
However, I’ll take a glass-half-full view today and claim that Rivian Automotive is applying an out-of-the-box approach. That’s commendable, wouldn’t you agree?
Rivian to Offer a More Affordable SUV Option
You’ve probably heard about Tesla’s EV price cuts. What about Rivian Automotive, though? Does Rivian have plans to provide a more affordable vehicle option during these challenging economic times?
Apparently, the answer is yes. Reportedly, Rivian Automotive’s upcoming R2 SUV will have a fairly affordable price range of $40,000 to $60,000. That’s certainly more appealing to value-conscious consumers than the R1 with its average starting price of $73,000.
As reported on Rivian Automotive’s Twitter feed, Chief Design Officer Jeff Hammoud made it crystal-clear that the R2 won’t just be a cheaper version of the R1. “Although the form vocabulary will be reminiscent of the R1, the design will be distinctly an R2,” Hammoud assured.
I’ll admit, $40,000 to $60,000 is a wide price range. So, it will be interesting to find out what the R1’s actual off-the-lot cost will be to the average consumer. I’m hoping it’s closer to $40,000 than $60,000, but that might just be a fantasy.
Take a Chance on RIVN Stock, if You Dare
There you have it: some reasons to consider investing in Rivian Automotive. Of course, the risks haven’t evaporated, so please don’t go all-in on Rivian Automotive shares.
Also, be sure to consider your willingness to gamble and potentially lose money on your investment in Rivian Automotive. That said, at least for this week (and this could change), I’m willing to put my stamp of approval on a very small share position in RIVN stock.
On the date of publication, David Moadel 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.
