Rivian is an American electric vehicle manufacturer. Founded in 2009, this firm isn’t one of the big car companies that have dominated the market for years. Nevertheless, it is considered one of the main rivals to Tesla. Instead, this newcomer is hoping to take advantage of the EV transition to break into the personal vehicle market and help reshape it for good. Here’s what you need to know as an investor. Whether you invest in established companies or want to buy a stake in a newer corporation, take advantage of the insights and guidance of a financial advisor.
Rivian’s Business Model
Rivian is an electric vehicle company that focuses on truck-style products. For the consumer market, the company builds pickup truck style and sports utility style vehicles. For the business market, the company builds delivery vans and an interchangeable “skateboard” chassis that allows for modifications based on the needs of an individual business.
Rivian also plans to open and operate a network of charging stations for electric vehicles across Canada and the United States. In 2021 the company launched three models. Keys to its vehicles feature bluetooth wireless and near field communication technologies. At time of writing, its market capitalization was about $34 billion.
How to Invest in Rivian
You can directly invest in Rivian. This company, which is backed by Amazon, went public in November 2021. It is a common stock listed as Rivian Automotive, Inc. on the NASDAQ market. Its ticker symbol is RIVN, and at time of writing it traded for approximately $43. If you would like to invest in this stock, you can do so directly through any brokerage that trades public shares. This can involve:
If you trade stocks through a third-party broker, you can contact and instruct them to buy shares of Rivian on your behalf.
If you trade stocks through an online broker, such as E*TRADE, you can buy shares of Rivian on your own behalf. Log on to your portfolio account and search for the RIVN stock. You will then be able to directly buy shares of Rivian.
Risks and Opportunities
Rivian’s main opportunity and risk are the same: It is attempting to break into an established industry with a brand-new technology. While there are risks and reward to breaking into an established industry, the biggest issue with Rivian is that it is a new technology firm. Electric vehicles are still an evolving industry. While this technology has progressed to a certain level of consumer adoption, it hasn’t completely arrived yet. Issues like distance driving, charging times, charging access and expense continue to raise problems with widespread EV adoption.
Most notably the ideal user class for current electric vehicles is urban drivers, as these are consumers who need their cars for shorter bursts that more readily accommodate the range of an electric vehicle. Yet this is also the consumer class most likely to live in an apartment, and therefore not have access to an overnight charging station for their vehicle. By contrast, suburban and rural consumers are more likely to own their own homes and so be able to build a station in their driveway or garage for overnight charging. Yet this is also the category of consumer most likely to need their car for the kind of long trips for which EVs are still not well suited.
Engineers are confident that car companies can and will solve these problems, but the question of who and how remains open.
The Bottom Line
Rivian is an electric vehicle company that focuses on trucks and truck-style vehicles. It was founded in 2009 and went public in late 2021. Shares are available on the NASDAQ exchange under RIVN. Rivian will likely do quite well if it can stay technologically ahead in this competitive industry. It will likely struggle if it cannot. The volatility of the company’s stock, which has swung between highs over $170 and lows around $50, reflects this uncertainty.
Tips on Investing
Electric vehicles are getting huge, with many car companies pledging partial or total overhauls to their fleets. Yet refueling remains arguably the biggest obstacle to widespread adoption. It still can take between 15 and 30 minutes to recharge an electric vehicle, far too long for a stop at the gas station. That’s a problem in many places, but not all.
Investing in any individual company is a gamble, but that doesn’t mean it’s a bad idea. Consider working with a financial advisor as you assess electric vehicle company shares. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
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