Is Rivian Stock a Buy in December?
Rivian Automotive (NASDAQ: RIVN) was among the highest-valued U.S. automakers when it went public in 2021. A market cap of over $100 billion put it second only to , which was valued at around $1 trillion at the time. The problem was that in 2021, Rivian only generated $55 million in revenue and lost $4.2 billion from its operations.
Its outrageous early valuations didn't last long. From its peak in November 2021, the stock began a precipitous and sustained tumble that left it down by more than 93% earlier this year. But now that Rivian's operations are finally beginning to scale up, could it finally be a buy at its current low share price?
While the U.S. economy is growing at an impressive rate, macroeconomic conditions remain challenging for the automotive industry. The biggest headwind may be high interest rates, which increase the cost of financing car purchases and make it more expensive for unprofitable companies like Rivian to raise outside capital. That said, the automaker is performing surprisingly well despite these headwinds.
Source Fool.com
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