Is Rivian a Millionaire-Maker Stock?

Rivian Automotive (NASDAQ: RIVN) has lost almost all its value in a short period, with shares down by an eye-watering 92% since hitting public markets in late 2021. However, the company still promises patient investors the opportunity to get in on the ground floor of the long-term electric vehicle (EV) opportunity. Let's weigh Rivian's pros and cons to decide if this struggling automaker still has millionaire-maker potential.

Today, the EV industry is radically different from when Rivian hit the scene three years ago. At the time, the market was soaring -- led by the industry leader , which had essentially proven that pure-play EV manufacturers could operate profitably at scale. Traditional automakers like Ford, General Motors, and Stellantis seemed relatively late to the party, giving Rivian an opportunity to possibly exploit the gap in Tesla's model lineup through its focus on pickup trucks and large SUVs.

Today, the thesis that may have justified Rivian's peak valuation of over $153 billion (the company is worth just over $10 billion today) has largely evaporated. Growth for the pure-play EV companies has stalled, and the traditional automakers are flooding the market with many different options -- particularly in Rivian's core SUV and truck segment.

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Source Fool.com