Rivian Just Followed Lucid's Most Criticized Growth Playbook and Investors Should Take Note
Rivian is preparing to dilute investors with a stock sale.
Overview
When the year began, I named Rivian (NASDAQ: RIVN) my top growth stock for 2026. The thesis was simple: Rivian's growth journey has become much more lucrative, yet the stock continues to trade at a discount to competitors like Lucid Group (NASDAQ: LCID) and Tesla across several key valuation metrics.
In the past, Rivian was viewed mostly as an electric vehicle (EV) stock. Indeed, the company now produces three electric vehicles: the R1S, R1T, and R2 SUV. But the company's future doesn't rest solely on vehicle manufacturing. Instead, Rivian has positioned itself as an artificial intelligence (AI) stock. The company expects to ramp up its AI investments so significantly that management quietly dropped its 2027 profit guidance earlier this year.
Image source: Rivian.
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Originally published at www.fool.com.