Rivian Stock: Is it a Buy Now?

Rivian Automotive's stock has declined 92% from its peak, but recent developments such as a joint venture with Volkswagen and consecutive quarters of positive gross profits show that the company may be turning a corner. Challenges remain as Rivian prepares to expand its manufacturing capacity and scale up production. Rivian has a technology platform and in-house focus, a partnership with Amazon, and a history of incurring significant net losses. If you're considering investing in Rivian, it's essential to understand these factors and the company's future prospects.

Rivian Automotive (NASDAQ: RIVN) has been a topic of interest for investors due to its ambitious plans in the electric vehicle (EV) market. The company has experienced a significant decline in stock price, down 92% from its peak, but recent developments suggest a potential turnaround. Rivian has formed a joint venture with Volkswagen (OTC: VWAP.Y), leveraging its proprietary technology platform for vehicle controls and autonomous driving features [1].

One of Rivian's key strengths is its in-house focus, managing nearly all aspects of its business, from engineering to manufacturing. The company's technology platform includes a comprehensive software stack and an autonomy platform with driver-assist technology. This technology was utilized in the joint venture with Volkswagen, which plans to integrate Rivian's zonal ECU architecture and software stack across its multiple brands [1].

Rivian's partnership with Amazon (NASDAQ: AMZN) has been a significant driver of its business, with more than 20,000 vehicles on the road since 2019. However, the company has faced challenges, including a net loss of $4.8 billion in 2024 and a $541 million loss in the first quarter of 2025. Despite these losses, Rivian has achieved consecutive quarters of positive gross profits, indicating a potential improvement in its financial performance [1].

Looking ahead, Rivian plans to expand its manufacturing capacity by building a new facility in Georgia, with an expected annual capacity of 400,000 vehicles. The company aims to achieve a positive gross profit for 2025 and continue to focus on cost efficiencies. However, analysts project that Rivian will continue to lose money through 2028 as it scales up production [1].

Investors should consider Rivian's high-risk, high-potential-reward profile. While the company has shown progress in revenue and gross profit, its ability to achieve profitability remains uncertain. Rivian's stock may be suitable for aggressive investors with a long-term buy-and-hold strategy.

References:
[1] https://finance.yahoo.com/news/rivian-stock-buy-now-170600633.html
[2] https://www.nasdaq.com/articles/rivian-automotive-rivn-beats-stock-market-upswing-what-investors-need-know