Without a doubt, Tesla (NASDAQ:TSLA) is the most famous American electric vehicle (EV) manufacturer. However, I invite you to consider investing in Rivian Automotive (NASDAQ:RIVN) stock as well as Tesla stock. This will diversify your portfolio, but there are other reasons to take a share position in Rivian.
For one thing, Rivian Automotive hasn’t already grown into a massive beast like Tesla has. Since Rivian is a much smaller company, it still could become the “next Tesla.”
Also, Tesla isn’t perfect. It has problems just like any other company does. For example, CEO Elon Musk disclosed a warning about potential production issues with Tesla’s Cybertruck. So, even if they’re huge Tesla fans, investors should at least give Rivian Automotive a chance.
RIVN Stock Investors Should Understand the Growth Story
Furthermore, Rivian Automotive is reportedly ramping up its hiring activity for service centers that are expected to open soon in Ontario, Alberta, and Quebec, Canada. According to Automotive News Canada, Rivian is preparing to start delivering EVs in Ontario and Alberta “very early next year.”
Now, let’s head back to the United States, where Rivian Automotive revealed significant progress at the company’s future manufacturing facility in Georgia in October. Fast-forward to early November, and Rivian announced that the automaker has hired its first Georgia plant manager. His name is Arnhelm Mittelbach, and he has experience at another luxury car manufacturer, Mercedes-Benz (OTCMKTS:MBGYY).
Rivian Automotive Could Have a New, Significant Revenue Source
Clearly, Rivian Automotive is in expansion mode in more than one region of the world. At the same time, Rivian is making a smart move that could provide significant revenue for the company.
Like Tesla, Rivian Automotive has an extensive network of EV charging stations. Rivian’s network of DC fast-charging sites is called the Adventure Network. Moreover, Rivian vehicle owners have been able to charge up at Adventure Network charging stations for free.
However, Rivian Automotive is starting to bill customers for using Adventure Network EV charging stations. The billing will be automatic, and other than that, the charging experience won’t change.
Currently, only Rivian drivers can use the Adventure Network charging stations, but they will be available to other EV brands soon. Over the next two years, Rivian plans to install more than 3,500 fast chargers in the U.S. Hence, it’s reasonable to conclude that Rivian Automotive should generate substantial revenue in the coming years when the Adventure Network is fully built out as planned.
RIVN Stock: A Great Alternative or Addition to Tesla Stock
Given the company’s compelling growth story, Rivian Automotive might actually be the “next Tesla.” Neither Tesla nor Rivian is a perfect company, but they both can offer value to long-term investors.
So, feel free to conduct your due diligence on Rivian Automotive. You might actually decide to invest in that EV maker instead of Tesla. Or better yet, consider owning a few shares of RIVN stock in addition to Tesla stock for a more diversified portfolio and exposure to two notable EV manufacturers.
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.