Should You Buy Rivian If Shares Fall Below $10?

Rivian Automotive (RIVN) has been a volatile stock since its initial public offering (IPO) in 2021, with shares fluctuating between record highs and current prices around $10. As an investor focused on stable profits and cash flows, you might be wondering if now is the right time to buy Rivian shares if they fall below $10. This article explores the factors that impact Rivian's stock price and evaluates the potential opportunities and risks of investing in this electric vehicle (EV) manufacturer.


Rivian's production and delivery timeline significantly impact its stock price. The company initially impressed investors with its production capabilities but subsequently faced delays and missed targets, leading to a decline in share price. Rivian's partnership with Volkswagen, which includes a $5 billion investment, could secure its capital needs for substantial growth. Despite facing macro headwinds and temporary plant shutdowns, Rivian expects to achieve a positive gross margin per vehicle by the fourth quarter of 2024, with analysts projecting a 34% compound annual growth rate (CAGR) in revenue from 2023 to 2026. If Rivian can overcome its challenges and meet production targets, it could fetch a much higher valuation in the future, making it an attractive investment opportunity at current prices.


Changes in investor sentiment towards Rivian, influenced by factors like the Volkswagen partnership, also affect its stock price. The joint venture with Volkswagen, announced on June 25, 2024, boosted Rivian's stock by over 30% (Source: The Motley Fool). This partnership, valued at up to $5 billion, addresses Rivian's cash flow concerns and secures its growth plans. Despite recent volatility, Rivian's fundamentals remain strong, with analysts predicting a 34% CAGR in revenue from 2023 to 2026. If Rivian's production and growth targets are met, it could fetch a higher valuation, making it an attractive buy below $10.

Macroeconomic factors, such as interest rates and market conditions, significantly impact Rivian's stock price and its ability to maintain a price above $10. Rising interest rates, as seen in 2024, can increase borrowing costs and decrease investor appetite for growth stocks like Rivian, driving its share price down. Market conditions, such as increased competition in the EV sector and macroeconomic headwinds, also contribute to Rivian's stock price fluctuations. However, Rivian's partnership with Volkswagen, which includes a $5 billion investment, can provide a financial buffer against these challenges, potentially helping Rivian maintain a price above $10.


Rivian's financial performance and earnings reports significantly impact its stock price, and analyst ratings play a crucial role in maintaining the $10 threshold. Rivian has missed production targets and incurred steep losses, leading to a decline in share price. However, its recent joint venture with Volkswagen, which involves a $5 billion investment, has boosted investor confidence, driving the stock price up by over 30%. Analysts have a consensus "Buy" rating for Rivian, with an average price target of $16.81, predicting a 65.13% increase from the current stock price. If Rivian's stock falls below $10, it may present an attractive entry point for investors, given its potential for growth and the support of major investors like Volkswagen. However, investors should closely monitor Rivian's earnings reports and analyst ratings to make informed decisions.

In conclusion, Rivian Automotive presents an attractive investment opportunity if shares fall below $10. The company's partnership with Volkswagen, which includes a $5 billion investment, addresses its capital needs and production challenges. Despite facing macroeconomic headwinds and temporary plant shutdowns, Rivian expects to achieve a positive gross margin per vehicle by the fourth quarter of 2024, with analysts projecting a 34% CAGR in revenue from 2023 to 2026. If Rivian can overcome its challenges and meet production targets, it could fetch a much higher valuation in the future, making it an attractive buy below $10. As an investor focused on stable profits and cash flows, it is essential to monitor Rivian's earnings reports and analyst ratings to make informed decisions about this promising EV manufacturer.