Prediction: Buying Rivian Stock Today Could Set You Up for Life
Rivian is copying Tesla's playbook for growth.
Overview
Tesla (NASDAQ: TSLA) is one of the biggest companies in the world. But Tesla's auto sales have actually been on the decline for several years now. With shares trading at 13.5 times sales, it's clear that the market doesn't just value the company as an EV stock. Instead, Tesla is now arguably a bona fide AI stock, with a valuation premium to match.
What exactly makes Tesla an AI stock? There are many aspects to the equation, but perhaps the biggest reason deals with autonomous driving. Self-driving cars have been promised for decades. But AI is advancing self-driving capabilities faster than ever before. And Tesla has one of the leading positions in a market enabled by autonomous cars: robotaxis.
Details
"We think $8 trillion to $10 trillion for the entire autonomous taxi opportunity throughout the world, from almost nothing," predicts Cathie Wood, the CEO of Ark Invest, a major Tesla shareholder. "That's how quickly AI is going to cause these things to happen."
Source
Originally published at www.fool.com.