Is Rivian Stock a Screaming Buy After the Launch of Its New Models?
For the first time in quite a while, investors were excited about the prospects for electric vehicle maker Rivian's (NASDAQ: RIVN) stock on Thursday. The company introduced not one, not two, but three new models, and also got a boost from a researcher's new buy recommendation on its shares. Yet Rivian is still struggling with a broad slowdown in EV sales growth, and it remains heavily unprofitable. Perhaps investors should curb their enthusiasm.
The three models Rivian unveiled that day look futuristic and sleek and have the company's distinct styling, so they should win over devotees. They aren't much of a departure from the EV maker's foundational R1T pickup and R1S SUV, though, so I'd be concerned that the company might not be widening its consumer base with the new vehicles.
There are heavier worries about Rivian's operations. The launch of the new models and the favorable stock coverage initiation (by veteran investment bank Jefferies) were encouraging, sure. Still, they don't quite paper over the bad news sprinkled throughout Rivian's latest earnings report.
Source Fool.com
