Down 22% This Year, Is Rivian Stock Overdue for a Rally?
Key takeaways
- RIVN Rivian (NASDAQ: RIVN) has done a lot in a short period of time.
- Rivian has designed an award-winning all-electric truck.
- In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia.
RIVN Rivian (NASDAQ: RIVN) has done a lot in a short period of time. Given that it is a money-losing start-up in the capital-intensive automotive sector, each step it has taken has been a make-or-break moment. So far, the company has executed very well. But the next make-or-break moment is already here, and it is a big one. The year-to-date stock decline of 22% is a sign that Wall Street is worried. There s a good reason for that concern.
Rivian has designed an award-winning all-electric truck. It has built a factory to produce that truck at scale. And it has produced a gross profit, selling the trucks it builds for more than it costs to build them. These are impressive achievements, and the company should be proud. However, it is still losing money, so it isn t yet a sustainable business.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »