Should You Invest $5,000 Into Rivian Stock Below $20?
Rivian is making strides as it expands its EV lineup, but it will continue to spend heavily as it scales up manufacturing capacity.
Overview
Rivian Automotive (NASDAQ: RIVN) captured great investor interest during its 2021 initial public offering (IPO), when the stock surged to over $170 per share, while its market capitalization reached $150 billion amid enthusiasm for electric vehicles (EVs). However, the stock has fallen sharply in recent years and remains 90% off its all-time high.
Despite the drastic decline, the company has made strides with its EV lineup and boasts a technology stack that sets it apart. With the stock below $20, is now the time to invest $5,000 (or another amount) in the beaten-down EV stock? Let's dive into the company's progress to find out.
Details
Rivian takes a vertically integrated approach to its EV platform, focusing on in-house manufacturing, technology, and software development. This approach gives it total control over its EV ecosystem but also requires massive up-front investment. At the end of the first quarter, Rivian's accumulated deficit exceeded $27 billion, reflecting the cumulative net losses the company has recorded since its inception in 2009.
Source
Originally published at www.fool.com.