Is Rivian Stock a Buy?
2024 has been a year of transition for the electric vehicle (EV) industry. Sales are still growing, but the rate of expanding sales has slowed noticeably. That's led many EV makers to throttle plans to increase production as well as the number of new models being offered.
Stocks in the industry have taken a beating as a result. Rivian Automotive (NASDAQ: RIVN) has thus far been relatively successful in building a customer base and ramping up production. But the company doesn't plan to sell more EVs this year compared to 2023. That disappointed investors and Rivian shares have plunged by more than 60% so far this year. Yet that could be just what long-term investors want if the company is able to successfully execute recently announced expansion plans.
But that road to successful execution won't be easy, and achieving its goals comes with many risks. First and foremost, the company needs to balance its available cash with the need to invest in its future. Rivian recently told investors how it planned to navigate that difficult path.
Source Fool.com
