Why Rivian Is a No-Brainer Growth Stock
On Tuesday, Rivian Automotive (NASDAQ: RIVN) posted a strong second quarter. The electric vehicle (EV) maker accelerated production enough to raise full-year guidance to 52,000 units; it improved its gross margin by 44 percentage points, or 4,400 basis points, compared to the first quarter; lowered costs; narrowed its quarterly loss; and topped Wall Street revenue estimates.
Yet in a mind-boggling surprise, Rivian's stock traded 10% lower Wednesday morning. But despite the head-scratching move in stock price, Rivian remains a no-brainer growth stock. Let's dive in to see why.
The transition from internal combustion engines to the future of electric vehicles is still in the early innings, and while eventually evaluating companies such as Rivian will become more complicated, right now it can be boiled down to three things: reduced costs, increased production, and better pricing.
Source Fool.com
