Rivian Stock Rallies to $17, Drawing Comparisons to Lucid Motors

Rivian has rallied to $17 per share since a bullish article in March, suggesting it had fallen too far at $10. The stock is now comparable to Lucid, indicating that it has started to recover from its earlier decline.

Title: Rivian's Resurgence: A Look at the Stock's Recent Rally and Future Prospects

Rivian Automotive (NASDAQ: RIVN) has experienced a notable rebound, rallying from a low of $10 per share to $17 in recent months. This turnaround follows a bullish article in March, suggesting that the stock had fallen too far and was poised for recovery. The stock's resurgence has brought it in line with Lucid Group, indicating a significant recovery from its earlier decline.

Rivian's growth potential is substantial, with plans to launch new discounted models in the coming months, which could double or triple the company's revenue over the next few years. The stock's valuation, trading at 2.6 times trailing sales, is significantly lower than its competitors, such as Tesla and Lucid Group, which trade at 6 to 13 times trailing sales [1].

One key factor contributing to Rivian's lower valuation is its relative lack of involvement in the robotaxi market. Both Lucid and Tesla have announced significant investments in robotaxis, a market expected to be worth up to $10 trillion globally. Rivian's board member has expressed skepticism about the current state of robotaxi technology, suggesting that Rivian does not see this as a near-term growth driver [1].

Despite this, Rivian's near-term prospects are promising. The company expects to see growth rates pick up considerably in 2025, driven by the launch of its new models. The stock's current valuation reflects this expected growth, making it an attractive opportunity for investors [1].

However, Rivian's path to profitability remains uncertain. The company reported a negative gross profit of $1.2 billion in 2023, and while it expects to achieve positive adjusted EBITDA by 2027, the timeline for realizing positive net income is still unclear. Rivian's management is focusing on reducing material costs, improving production efficiency, and increasing revenue from regulatory credits to achieve these goals [2].

In summary, Rivian's recent rally suggests that the stock has started to recover from its earlier decline. While the company faces challenges in realizing profitability, its near-term growth prospects are promising. Investors should closely monitor the company's progress in reducing costs and achieving profitability in the coming years.

References
[1] https://www.nasdaq.com/articles/think-its-too-late-buy-rivian-heres-no-1-reason-why-theres-still-time
[2] https://247wallst.com/investing/2025/08/19/rivian-price-prediction-and-forecast/