Rivian Is Worth $23 Billion With the R2 Just Ramping. Where Will the Stock Be in 3 Years?
It comes down to how many vehicles the R2 ramp delivers, and how much profit rides on each one.
Overview
As of this writing, Rivian (NASDAQ: RIVN) stock sits at about $16, giving the company a market value of about $23 billion. For that price, investors get an electric vehicle maker that will deliver perhaps 70,000 vehicles this year, still loses money on them at the gross level, and just started shipping the product its whole investment case rests on.
That last part is why the next three years matter so much. The R2, a smaller and more affordable SUV than Rivian's first models, began reaching customers on June 9. Whether the stock is higher or lower in 2029 comes down to how many R2s the company builds -- and what each one earns.
Image source: Rivian.
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Originally published at www.fool.com.