Business Insights
  • Home
  • Crypto
  • Finance Expert
  • Business
  • Invest News
  • Investing
  • Trading
  • Forex
  • Videos
  • Economy
  • Tech
  • Contact

Archives

  • August 2025
  • July 2025
  • June 2025
  • May 2025
  • April 2025
  • March 2025
  • February 2025
  • January 2025
  • December 2024
  • November 2024
  • October 2024
  • September 2024
  • August 2024
  • July 2024
  • June 2024
  • May 2024
  • April 2024
  • March 2024
  • February 2024
  • August 2023
  • January 2023
  • December 2021
  • July 2021
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019

Categories

  • Business
  • Crypto
  • Economy
  • Finance Expert
  • Forex
  • Invest News
  • Investing
  • Tech
  • Trading
  • Uncategorized
  • Videos
Subscribe
Money Visa
Money Visa
  • Home
  • Crypto
  • Finance Expert
  • Business
  • Invest News
  • Investing
  • Trading
  • Forex
  • Videos
  • Economy
  • Tech
  • Contact
Should Investors Buy Rivian Stock Now?
  • Business

Should Investors Buy Rivian Stock Now?

  • May 25, 2025
  • Roubens Andy King
Total
0
Shares
0
0
0
Total
0
Shares
Share 0
Tweet 0
Pin it 0
  • A long-running Axios poll indicates Tesla's brand reputation has tarnished.

  • Rivian could benefit, but management's recent guidance update is discouraging.

  • Hope isn't lost, but a lot is riding on Rivian's upcoming economy model.

  • 10 stocks we like better than Rivian Automotive ›

Tesla was a driving force in creating the electric vehicle market and became one of the most popular brands across any industry for its technology and focus on sustainable energy. Tesla's success helped make CEO Elon Musk one of the world's wealthiest and most famous people.

However, a recent poll indicates that Elon Musk's decision to wade into a divisive political landscape has tarnished Tesla's brand.

It could open the door for competitors like Rivian Automotive (NASDAQ: RIVN), which hopes to establish itself but has struggled to grow its business. Is Tesla's potential slip the opportunity Rivian needs, and should investors buy the stock?

Here is what you need to know about investing in Rivian today.

Image source: The Motley Fool.

Elon Musk's ambition has helped him become a legendary entrepreneur. He has founded, co-founded, or invested in a list of companies, including Tesla and SpaceX, and amassed a $400 billion-plus net worth that he leveraged to buy social media platform Twitter, now known as X.

Musk has waded further into America's political scene in recent years. The problem with politics isn't necessarily one's views or opinions, but politics' divisive nature. In other words, no matter how you feel, someone will disagree.

Axios conducts an annual poll that tracks the reputations of numerous companies and brands among American consumers. Tesla once had a sterling reputation, but that has changed. The company ranked eighth in the survey in 2021 but fell to 63rd last year and 95th this year.

It's not an absolute indictment; the poll surveyed only about 16,500 U.S. adults. Still, SpaceX has also slipped, indicating that political blowback has likely contributed to Tesla's slowing vehicle sales.

The automotive industry is competitive, and it costs billions of dollars to build and operate the factories and equipment capable of producing large quantities of electric vehicles. Even Tesla nearly bankrupted itself trying to grow production of its Model 3 from 2017 to 2019.

Rivian has continued to raise money as it works through its growing pains, but its lack of growth in recent years hasn't been a good sign. The company delivered 50,122 vehicles in 2023, but that only grew to 51,579 last year.

Potential electric vehicle buyers who avoid Tesla can still opt for Rivian, but that largely hasn't materialized yet. In the fourth quarter, management set 2025 delivery guidance at only 46,000 to 51,000, and lowered that to 40,000 to 46,000 deliveries in Q1, citing how uncertainty regarding tariffs and trade policies may impact consumer demand.

There has just been too little appetite for Rivian's flagship products, the R1T truck and R1S sport utility vehicle (SUV).

Tesla's growth took off when the company launched the Model 3, a cheaper vehicle that appealed to more buyers. Rivian hopes to begin production of the R2, a smaller, more affordable SUV than the R1S, starting at around $45,000, in the first half of next year.

There is increasing pressure on this launch, since Rivian is burning tremendous amounts of cash operating at its current size:

RIVN Free Cash Flow Chart
RIVN Free Cash Flow data by YCharts

Rivian still has plenty of near-term liquidity, with over $7.1 billion in cash and a joint venture with Volkswagen. However, if Rivian struggles to generate sales volume, it could eventually trigger continued fundraising and share dilution that squashes any meaningful investment upside. Shareholders have already felt the pain with the stock down 91% from its all-time high in 2021.

In summary, Rivian must still make strides, and Tesla's political stumbles have not meaningfully helped the Rivian's existing sales problems. That makes the stock a risky investment. It would probably be wise to watch Rivian from afar until the company starts selling the R2 and demonstrates sufficient success in attracting buyers.

Before you buy stock in Rivian Automotive, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Rivian Automotive wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $639,271!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $804,688!*

Now, it’s worth noting Stock Advisor’s total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of May 19, 2025

Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends Volkswagen Ag. The Motley Fool has a disclosure policy.

Polling Indicates Tesla's Popularity has Plunged: Should Investors Buy Rivian Stock Now? was originally published by The Motley Fool

Total
0
Shares
Share 0
Tweet 0
Pin it 0
Roubens Andy King

Previous Article
America’s Credit Rating Downgraded—And Why It’s Another Headwind For Housing
  • Invest News

America’s Credit Rating Downgraded—And Why It’s Another Headwind For Housing

  • May 25, 2025
  • Roubens Andy King
Read More
Next Article
Nippon Mutual Fund Hack हो गया।Invest नहीं कर पा रहे निवेशक।
  • Videos

Nippon Mutual Fund Hack हो गया।Invest नहीं कर पा रहे निवेशक।

  • May 25, 2025
  • Roubens Andy King
Read More
You May Also Like
Expro Group Holdings (XPRO) Skyrockets Following an Impressive Q2 Performance
Read More
  • Business

Expro Group Holdings (XPRO) Skyrockets Following an Impressive Q2 Performance

  • Roubens Andy King
  • August 2, 2025
A Reliable Source of Materials Dividends for Global Investors
Read More
  • Business

A Reliable Source of Materials Dividends for Global Investors

  • Roubens Andy King
  • August 2, 2025
Australia dodges latest Trump tariff hikes as trade minister heralds ‘vindication’ for Albanese’s approach | Australian foreign policy
Read More
  • Business

Australia dodges latest Trump tariff hikes as trade minister heralds ‘vindication’ for Albanese’s approach | Australian foreign policy

  • Roubens Andy King
  • August 2, 2025
Amazon posts strong Q2 growth, provides mixed guidance
Read More
  • Business

Amazon posts strong Q2 growth, provides mixed guidance

  • Roubens Andy King
  • August 1, 2025
Aamir Khan: India’s movie legend on a cut-price mission to save Bollywood | Bollywood
Read More
  • Business

Aamir Khan: India’s movie legend on a cut-price mission to save Bollywood | Bollywood

  • Roubens Andy King
  • August 1, 2025
Earn 125,000 points with the Marriott Bonvoy Business Amex
Read More
  • Business

Earn 125,000 points with the Marriott Bonvoy Business Amex

  • Roubens Andy King
  • August 1, 2025
Low-wage workers reeling over Trump’s looming Snap cuts as food prices rise | US domestic policy
Read More
  • Business

Low-wage workers reeling over Trump’s looming Snap cuts as food prices rise | US domestic policy

  • Roubens Andy King
  • August 1, 2025
Why Carvana Stock Soared Today
Read More
  • Business

Why Carvana Stock Soared Today

  • Roubens Andy King
  • August 1, 2025

Recent Posts

  • What Investors Need to Know
  • A vacancy on the Fed is opening early as Trump urges board to ‘assume control’ if Powell doesn’t cut rates
  • Amazon is selling a 'fantastic' $309 Timex automatic watch for only $166, and buyers 'really like the style'
  • Venture firm CRV raises $750M, downsizing after returning capital to investors
  • Bitcoin Plunge Below $115,000 Wipes Out $700M In Crypto Longs
Featured Posts
  • What Investors Need to Know 1
    What Investors Need to Know
    • August 2, 2025
  • A vacancy on the Fed is opening early as Trump urges board to ‘assume control’ if Powell doesn’t cut rates 2
    A vacancy on the Fed is opening early as Trump urges board to ‘assume control’ if Powell doesn’t cut rates
    • August 2, 2025
  • Amazon is selling a 'fantastic' 9 Timex automatic watch for only 6, and buyers 'really like the style' 3
    Amazon is selling a 'fantastic' $309 Timex automatic watch for only $166, and buyers 'really like the style'
    • August 2, 2025
  • Venture firm CRV raises 0M, downsizing after returning capital to investors 4
    Venture firm CRV raises $750M, downsizing after returning capital to investors
    • August 2, 2025
  • Bitcoin Plunge Below $115,000 Wipes Out $700M In Crypto Longs
    • August 2, 2025
Recent Posts
  • Spot Bitcoin ETFs See 2M Outflow as Ether ETFs Break 20-Day Inflow Streak
    Spot Bitcoin ETFs See $812M Outflow as Ether ETFs Break 20-Day Inflow Streak
    • August 2, 2025
  • Expro Group Holdings (XPRO) Skyrockets Following an Impressive Q2 Performance
    Expro Group Holdings (XPRO) Skyrockets Following an Impressive Q2 Performance
    • August 2, 2025
  • Late Starter’s Guide to Real Estate (Start in Your 40s!)
    Late Starter’s Guide to Real Estate (Start in Your 40s!)
    • August 2, 2025
Categories
  • Business (1,312)
  • Crypto (707)
  • Economy (105)
  • Finance Expert (1,163)
  • Forex (708)
  • Invest News (1,595)
  • Investing (896)
  • Tech (1,298)
  • Trading (1,282)
  • Uncategorized (1)
  • Videos (775)

Subscribe

Subscribe now to our newsletter

Money Visa
  • Privacy Policy
  • DMCA
  • Terms of Use
Money & Invest Advices

Input your search keywords and press Enter.