Down 22% This Year, Is Rivian Stock Overdue for a Rally?
Rivian is facing a make-or-break moment, and it could take a few quarters to know which way things are going.
Down 22% This Year, Is Rivian Stock Overdue for a Rally?
Overview
Rivian (NASDAQ: RIVN) has done a lot in a short period of time. Given that it is a money-losing start-up in the capital-intensive automotive sector, each step it has taken has been a make-or-break moment. So far, the company has executed very well. But the next make-or-break moment is already here, and it is a big one. The year-to-date stock decline of 22% is a sign that Wall Street is worried. There's a good reason for that concern.
Rivian has designed an award-winning all-electric truck. It has built a factory to produce that truck at scale. And it has produced a gross profit, selling the trucks it builds for more than it costs to build them. These are impressive achievements, and the company should be proud. However, it is still losing money, so it isn't yet a sustainable business.
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Originally published at www.fool.com.
