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Rivian Stock (NASDAQ: RIVN) Analysis

Rivian Stock (NASDAQ: RIVN) Analysis

Trading for Beginners - Rivian Stock

First Published: 11 October, 2022
Last Updated: 23 November, 2022
Fact-checked by Adrian Müller

People are betting big on Rivian to be the company that competes head-to-head with Tesla.Regarding market valuation, Rivian stock is ranked second among its rivals. It has also started shipping consumer vehicles as well. Both the R1S SUV and R1T pickup truck have received critical acclaim.

If you’re looking for a deep dive into the stocks and financials of the company, then you’re in the right place. We will look at the company’s overview, Rivian’s competitors, and stock analysis.

There’s also a step-by-step breakdown of how you can buy Rivian stock. So, let’s get started.

Table of Content

Rivian Stock Price - Live Chart and Latest Financials

Before reading this article, have a look at the current Rivian stock price (NASDAQ: RIVN) showing key current and historical financials of the company. You may also expand the interactive menu options below to conduct your own analysis with additional
technical indicators based on the actual market data!

Rivian Company Profile And Key Competitors

Rivian is one of the few electric vehicle companies that can realistically compete with Tesla. That’s for a couple of reasons. A major reason is that corporate giants like Ford and Amazon back it.

The company first confidentially filed for an IPO on August 27th, 2021, at a market value of $80 billion. That’s not a number to scoff at by any means. This section will deep dive into the company’s profile, stocks, and key competitors.

However, other reports started surfacing. Around Nov 2021, there were reports that the company was seeking a valuation in a more modest range. $53 billion to $60 billion, to be exact.

If you decide on whether to invest, knowing the ins and outs of a business is the best way to go about it. Here’s what you need to know about Rivian:

The company is legally called Rivian Automobiles, Inc. Quite a hip name. ‘Rivian’ has a nice ring to it. But it didn’t start with this name. It was called Avera Automobiles for a short while. Then the company’s founder, Scaringe, changed its name to Rivian. This originates from a small Indian river.

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The company prides itself on one crucial thing – it doesn’t act like a traditional car company. Rivian is all about sustainability and focuses on the environment. It wants to make an impact for the better.

Confidence Inspiring Backers

A significant draw for serious investors to invest in Rivian is the confidence of other corporate giants. As you would expect, it instills confidence in many people. Amazon and Ford placed their bet in Rivian and partnered up.

Amazon ordered a huge 10,000 electric vans from the company. The eCommerce behemoth plans to use these hi-tech vans as delivery vans for its operation. They are already operating in the wild. You can check them out on YouTube; it’s pretty cool stuff. Besides the vehicle orders, Amazon also invested $700 million.

Ford also invested a significant chunk of money into the company. It invested $500 million in the company soon after Amazon showed interest. Unfortunately, this partnership didn’t last that long.

The reasons weren’t that Ford believed Rivian would not be successful. Instead, it had to do with the COVID-19 pandemic. Ford pulled out of the deal and decided to move its production in-house.

There were also other significant investments from other companies. Cox Automotive invested $300 million in the company, and T. Rowe Price invested $3 billion in the company following two investments.

Rivian’s investment history looks very promising, and there has been a lot of coverage about how the company is a money-raising machine. Rivian’s current value is $29.72 billion. However, it was quite high before, which made Rivian’s stock price go up quite a lot.

The People Behind Rivian

When it comes to investing, in many cases, you’re not investing in the company as such. You’re mostly investing in the people that are running the ship.

That’s why it’s important to know about the company’s leadership. Here’s a quick overview of the key people behind the company.

NamePosition/Title
Robert Joseph Scaringe Ph.D.Founder, Chief Executive Officer, and
Chairman
Claire McDonoughChief Financial Officer
Frank KleinChief Operations Officer
Nick KalayjianExecutive VP, Engineering, Product
Development and Programs
Neil SitronGeneral Counsel and Secretary
Jiten BehlChief Growth Officer
Jeffrey R. BakerChief Accounting Officer
Timothy Francis Bei C.F.A., CFAVice President of Investor Relations
Nick MulhollandVice President of Global Communications
Helen RussellChief People Officer

Rivian focuses heavily on its workforce. It pays attention to sourcing the right talent to steer the company towards success. From 2018 to 2019, it doubled its workforce, with around 750 people working for it.

It has even hired well-known executives from big-name automobile companies like Ford and Tesla. Additionally, Rivian hired people from struggling competitors like Faraday Future. The company now has over 6,000 employees across Canada, Europe, and the US.

Rivian IPO Details

Rivian is planning to offer 135 million shares. These shares are priced between $57 and $62 each. There’ll also be an option for underwriters to purchase more shares, up to 20.25 million.

If we assume that all of these shares are sold at the high price of $62, then this means that the company would bring in $9.6 billion, which is a significant amount of capital. With a talented team behind them, the company seems poised for success.

Its most crucial investors, like T. Rowe Price and Amazon, also showed interest in buying an aggregate number of shares of $5 billion.

Rivian Automobiles Timeline

Here’s a breakdown of all the major events that make up the company’s history. This includes facility acquisitions and more.

If you want a short and brief overview, this will give you a good idea. It will also help you understand where the company stands.

  • 2011 – Company named itself Rivian.
  • 2015 – Opened research facilities in California and Michigan.
  • 2017 – Acquired Mitsubishi plant.
  • 2018 – Revealed its first two prototypes.
  • 2019 – Ford Motor invested in Rivian.
  • 2020 – Tesla filed a lawsuit against the company for allegedly stealing proprietary information from previous Tesla employees.
  • 2021 and beyond – The Company faced losses during the first quarter of 2022. But it’s expected to become a successful electric vehicle manufacturer.

The First Prototypes

From its founding, Rivian was focused on two things – electric vehicles and autonomous driving. Recent Rivian automobiles didn’t match early prototypes. It wanted to build luxury sedan-type vehicles.

The company showed off a sports car in 2011 but was altogether scrapped. Rivian then slowly transitioned into electric vehicles. Most of these vehicles have received stellar critical feedback from reviewers.

Many analysts say this was the right move for the company since many other companies have a stronghold on luxury sports and a couple of segments – namely Tesla.

We have a complete competitor analysis coming up as well. So, keep on reading for that. It has research facilities in Michigan and California. The Michigan facility went on to become the main HQ for the company.

Then in 2017, it acquired a facility from Mitsubishi in Illinois, becoming a hub for its North American manufacturing. This was beneficial for Rivian financially. It received tax abatements and state government grants.

Later that year, Rivian announced two prototypes. The R1T pickup and R1S SUV. Production was set to start in 2020. Recently, the company has been slowly moving all of its major operations to California.

Current Vehicle Models

So, what does the current lineup look like from the auto manufacturer? The Amazon van is one of its major offerings. But, of course, end consumers cannot buy it. This is because the vans were an important condition for the investment. Rivian put a lot of focus on building the van.
 
There’s also a lot of hype around its electric truck. Aptly named the Rivian R1T, it’s a consumer-focused electric truck with five seats. There are also some pretty exciting features focusing on the outdoor lifestyle.
 

The launch edition of the truck will come with a mid-tier battery pack rated for over 300 miles. The company also launched the R1S SUV. You can visit the company’s site for a more first-hand experience.

Rivian’s Strong Competitors

Rivian isn’t the only fish in the sea. It has competitors like Tesla, Faraday Future, and Nikola. However, Rivian’s stock is the second highest amongst its competitors.

How does the competitive landscape look for Nikola? Out of all the companies, Nikola competes with Tesla the most.

It was founded in 2003 and is headquartered in Austin, Texas. Apart from this, the company has office locations in many places worldwide.

Tesla is the most high-profile of the bunch. It also has the most impressive market valuation of $953.1 billion. Around 90,000 employees are working for Tesla.

Revenue-wise, Tesla is doing $53.8 billion with a net income of $5.6 billion in 2021. Their gross profit was $13.6 billion, with a cost of good standing at $40.2 billion.

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Rivian Stock Fundamentals (NASDAQ: RIVN)

The fundamentals will help you understand the intrinsic value of Rivian Automotive stock. You’ll be able to gauge the factors that impact the company’s success or failure. So, for an investor, this is a crucial thing to pay attention to.

It’s done by taking a few things into account – economic and financial indicators like cash flow, income statement patterns, and balance sheet changes. 

Price-To-Sales

Price-to-sales is used to evaluate equity. Specifically, it is relative to a company’s past performance and other similar companies. So, a lower ratio means that it’s better to invest. But as with many things, investors should be cautious and not only take P/S analysis as the only factor when deciding.

Rivian Automotive stock’s current sale price is 196.29x. One essential thing you need to understand is that the price-to-sales analysis doesn’t consider debt. So, it shows you how much the market values every dollar of sales.

Fundamental Drivers

Then there are the fundamental drivers. It uses comparative valuation techniques to use fundamental indicators. These help determine a company’s current stock value. Rivian is currently a top stock. Importantly, it doesn’t find intrinsic value.

Rivian Fundamentals Chart

EBITDA$5.09 Billion
Return on Equity53.05 %
Z Score10.8
Return on Asset30.55%
Market Capitalization$29.72 Billion
Current Valuation$16.03 Billion
Outstanding Shares$883.4 Million
Price to Earnings to Growth0.17x
Insider Shares Owned12.51%
Shares Owned by Institution66.56%
EPS25.37x
Shorted Shares$53.64 Million
Short Ratio3.13x
Price to Book2.04x
Cash Flow$3.29 Billion
Revenue$150 Million
Book Value/Share35.53x
Profit (Gross)$465 Million
Current Ratio11.19 x
Net Income$5.87 Billion
Debt to Equity0.09%
Cash and Equivalents$377.13 Million
Total$16.43 Billion
Cash Per Share18.24x
Although knowing the stock fundamentals is very important. You cannot ignore technical analysis either. Both help you understand where Rivian stands financially. You can check out this page for further information.

Rivian Stock (NASDAQ: RIVN) Technical Analysis

Technical stock analysis is very different compared to fundamental analysis. Technical analysis tries to predict stock movements based on past data. It is mainly based on price and volume data.

Rivian stock price is at $33.33 currently, and the oscillators are still indicating a sell. If you want to always be in the know about Rivian stock technical analysis, you need to keep up with realtime charts. That’s how you find the latest updates.

You can check out this data to get updates on the stock’s technical analysis. You’ll also get updated information on its stock price today.

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Rivian Stock Valuation

After its IPO, the company’s stock valuation set a record, topping $100 billion. This has mostly to do with Amazon’s order of 10,000 vans. The current Rivian stock price is $31.99. But what does this mean?

Well, it seems like the company is properly valued at this point. However, there will be a leap of faith needed from investors. Some are speculating that it could be the next Tesla. But that’s a long way to go.

Rivian Stock Forecast

Apart from Rivian’s stock price (NASDAQ: RIVN), keeping an eye on the stock forecast gives you a good sense of market consensus. Although you should never invest solely based on what others think, it’s still a factor to consider. So, what does the forecast for Rivian Automotive stock say?

Analysts predict that by 2025, the stock price will be $37.28. However, this target is an educated guess at best. Some market conditions are at play here, and those are crucial. The forecast can differ based on things like stock price volatility and other macroeconomic factors.

Over the coming year, though, the forecasts vary quite a lot. Some predict Rivian’s stock price will be as low as $27; others said it might be as high as $83.

Rivian Stock Latest Market News

Staying up-to-date with the latest trends is crucial. To be successful in investing, you need to be able to trade the news.

The price of a company’s shares can be different tomorrow compared to today’s. So, being in the know will put you at an advantage.

When stock news is scheduled, you can set up your moves strategically. Some news can have a good impact on one asset class. But be very bad for another asset class.

That’s why it’s important to know the latest market news. You can get the latest trends from reputed sites like Market Watch ,Yahoo Finance and CNBC.

Should I Buy Rivian Stock (NASDAQ: RIVN)?

Rivian might sound like a very lucrative stock to buy, but that might not be the case necessarily. Its value hit a peak of $150 billion. That’s relatively high. However, the company’s valuation has taken a significant hit. So, is the stock a bargain at this valuation?

Well, one concern is that Rivian is burning cash. By 2025, the company will have burnt about $21 billion in cash. At least, that’s what it’s expecting. The worst part is its revenue growth doesn’t justify this much spending.

Production difficulties are pretty severe as well. The company faces inflationary pressure and supply chain challenges, leading to higher costs. So, at the current Rivian stock price, is it a buy?

Some investors are pretty skeptical about the company right now. So, investors should buy Rivian Automotive stock cautiously.

How To Buy Rivian Stock?

We prepared this section for those who want a step-by-step guide on how to buy Rivian stock (NASDAQ: RIVN). This is a generic guide on how to buy stocks. But as an investor, it’s up to you to be responsible with your money and invest cautiously.

Step 1: Finding The Right Broker

You’ll need to open an account with a broker. You must keep a few things in mind when choosing the right one. Here are some crucial factors to look for:

User-friendly

When investing, you don’t want to fiddle with the interface. It should be easy to use and intuitive. So, choose an easy-to-use and modern platform.

Commission Free

If you are just getting started investing and buying shares, commission-free brokers and traders will help you grow faster. Although, this might not be that exciting for someone who has already been investing for a while.

Low Account Fees

Low account fees will benefit veterans and new traders. Compare the traders’ fees to ensure you’re making the right choice. Also, make sure there are no hidden fees.

Step 2: Funding

There are multiple options you can choose to fund your account. You can use a debit/credit card or simple bank transfers. Remember, you’ll need to fund your account to start trading and buying shares.

Step 3: Choose An Amount To Invest

Choose how much you want to invest at the start. If you’re new, you might start with a smaller amount. Veterans might be able to stretch a bit more. But regardless of experience, keep in mind the stock you’re buying. Are you confident in it? That’s the question you should be asking yourself.

Step 4: ETFs Vs. Stocks

It’s time to choose between stocks and ETFs. ETFs are great for those who don’t want to take big risks. This will be your call to make. Are you more comfortable with stocks? Or are you more comfortable with ETFs? Check out Investopedia’s deep dive if you need a refresher on ETFs? Check out Investopedia’s deep dive into the differences between ETFs and stocks.

Step 5: Set Up Your Order

Now it’s time to set up your order. You’ll need to set up things like stop loss, limit order, market order, and stop limit.

Step 6: Place Order and Monitor the Performance

Place the order and then hit buy. That isn’t the end of the story, though. You must monitor the performance.

Experts say that investors who buy Rivian Automotive stock should be cautious. So continually monitor the stock’s performance. That way, you’ll be able to make more informed decisions. As we mentioned, keep an eye on the latest stock news and market trends.

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Wrapping Up

With the right strategy, you can become successful in trading stocks. Hopefully, you now know everything there is about Rivian stock (NASDAQ: RIVN). Keep in mind that you should invest in Rivian with caution.

Although it has many high-profile backers and some investors are pretty confident, the considerable loss in valuation is concerning. Especially when it’s eating through cash; that being said, there is still hope that it’ll succeed. That’s what many experts are expecting.

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