Buying Rivian Could Be Your Biggest Regret in 2022
Electric vehicle start-up Rivian Automotive's (NASDAQ: RIVN) November debut on Wall Street was one of the most hyped initial public offerings in recent memory. Its market cap is already more than $80 billion, and shareholders are hoping it becomes the next Tesla (NASDAQ: TSLA).
With high demand for its upcoming vehicles and a large deal to supply vans to Amazon, Rivian could be a long-term winner. However, based on several short-term red flags, investors might wind up disappointed with the company in 2022.
Rivian doesn't have a demand problem, as evidenced by the 71,000 pre-orders it reported for its R1 models and a 100,000-vehicle order that it has from Amazon for delivery vans. But its investors need to consider just how difficult it is to develop the infrastructure required to mass-produce vehicles efficiently.
Source Fool.com
