Investing in Rivian Stock: A Risky Venture with Potentially High Rewards
Rivian stock has been on a roller coaster ride in recent weeks, and today it is no different. After the announcement of Amazon’s partnership with Stellantis, Rivian’s stock plummeted hard. The electric truck designed by Rivian is indeed impressive, but its overvaluation based on speculation has caused the stock to be volatile. This trend is not uncommon for tech stocks, as we have seen similar patterns with Facebook's early days.
The news of GM introducing their own electric Silverado might have contributed to the drop in Rivian’s stock price. Offering 400 miles of driving range, up to 10,000 pounds trailering capacity and loaded with high-tech innovations, the 2024 All-Electric Chevrolet Silverado will likely pose a great competition against Rivian.
For those considering investing in Rivian stock now, it is important to understand that this could be a long term investment. With production still far off from reaching any level of consistency and many potential risks such as bad press or supply chain issues, investors should expect to see returns only after several years. Therefore, if you can tolerate the possibility of the stock dropping further before going up, then now may be a good time to buy into Rivian stock.
Overall, while there are some positives about investing in Rivian stock at the moment, it is important to remember that this is an extremely risky venture and one should always do their research before making any decisions. The stock could go up or down at any moment, so it is important to be aware of the risks and potential rewards before investing.
In conclusion, Rivian’s stock has been on a roller coaster ride in recent weeks and today was no different. With Amazon’s partnership with Stellantis and GM introducing their own electric Silverado, investors should understand that this could be a long term investment with many potential risks involved. Therefore, if you can tolerate the possibility of the stock dropping further before going up then now may be a good time to buy into Rivian stock but always do your research first!
Why has Rivian stock dropped since the Amazon-Stellantis news?
The EV truck/van/SUV space is becoming increasingly crowded, and Rivian is at least a year out from any level of consistent high volume production. This type of tech stock activity is usually followed by 6 months - 1 year of downward pressure on the stock.
Is now a good time to buy Rivian stock?
It could be a good time to buy if you can tolerate it dropping even more before it starts going up. A 3-5 year time frame for this investment is probably reasonable, certainly not to expect a short term return.
What are some reasons why Rivian stock might go down?
Reasons why it might go down include not meeting production or sales targets, inability to hire/retain qualified personnel, trouble with their supply and distribution networks, emergence of competitors' EVs, bad press regarding the pending sexual discrimination lawsuit, etc.
Could a full blown stock market crash affect Rivian stock?
Yes, a full blown stock market crash could affect Rivian stock and it could be one of the first victims. The stock market is a reflection of the overall economy and if it crashes, all stocks will be affected.
What are some other factors that could affect Rivian stock?
Other factors that could affect Rivian stock include changes in consumer demand for EVs, government incentives or regulations, technological advances by competitors, and changes in investor sentiment. Additionally, any news related to Amazon's involvement with Rivian could have an effect on the stock price.