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.

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

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

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.

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

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).

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.

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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