5 Things You Need to Know if You Buy Rivian Today

Investor excitement for EV stocks has cooled, with Rivian's shares dropping about 40% in the first half of 2024.

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– This steep decline might be an overreaction, presenting a potential buying opportunity for savvy investors.

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Let's examine key factors to consider before adding Rivian stock to your portfolio.

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1. Rivian's cash position dropped from $11.2 billion in Q1 2023 to $6 billion in Q1 2024, but a $5 billion investment from Volkswagen provides some relief.

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2. Rivian expects to produce 57,000 vehicles in 2024, maintaining its forecast due to factory updates and slowed operations.

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3. Rivian's revenue grew to $4.4 billion in 2023, with management projecting a gross profit in Q4 2024 and breakeven by 2027 (EBITDA).

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4. Rivian's shift of R2 production from Georgia to Illinois saves $2.5 billion, but investors should watch for updates on the Georgia factory's potential.

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5. Rivian trades at 2.8 times trailing sales, a discount compared to EV peers Lucid Group and VinFast Auto, despite all three struggling to generate gross profits.

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