Rivian Stock: The EV Recovery Play to Watch
Electric vehicle (EV) start-up Rivian (NASDAQ: RIVN) has made impressive strides in its attempt to break into the auto sector. It has an award-winning vehicle and has achieved scale production of its high-end trucks. It has important partners, like Amazon (NASDAQ: AMZN) and . What it doesn't have are profits. This is what you need to watch if you own or are thinking about buying Rivian.
Rivian currently makes delivery vehicles and expensive consumer trucks. Operating at the high end of the consumer market makes complete sense, given the company's low production volumes, since it is still just building out its EV business. Making cars is capital-intensive, and building factories even more so. If a company has only a small number of vehicles to spread its costs over, it will have to charge a lot for each car.
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Source Fool.com
