Rivian Automotive: High Margin Of Safety

On the Pulse
14.56K Followers
(10min)

Summary

  • Rivian Automotive faces short-term production issues and potential loss of EV tax credits but remains a strong long-term investment with significant cash reserves.
  • Despite production setbacks and a revised forecast, Rivian's valuation offers a high margin of safety, making it a compelling buy.
  • Rivian's focus on reducing operating expenses is crucial for future profitability, even as it scales up new EV models.
  • The market's reaction to potential policy changes is exaggerated; Rivian's innovation and cost-efficiency will drive long-term growth.

Rivian Electric Pickup Truck

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Rivian Automotive (NASDAQ:RIVN) is dealing with the fallout from a short-term production snag and owns a substantial portion of its market valuation in cash.

Rivian Automotive’s stock plunged 14% last Thursday on news that the incoming Trump administration could

This article was written by

14.56K Followers
A financial researcher and avid investor with a keen eye for innovation and disruption, as well as growth buy-outs and value stocks. Keeping an eye on the pace of high tech and early growth companies, I write about current events and the biggest news surrounding the industry, and strive to provide readers with ample research and investment opportunities.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of RIVN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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