close
close
Is Rivian the most intelligent investment you can make today?

Many growth stocks have been struggling this year. Rivian (Rivn -2.14%))) is no exception. The shares have decreased by about 16% to date, although the volatility of the stock has moved this number a lot.

The strange thing is that the shares have dropped properly because the company has been preparing for its largest growth thrust for years. Could this be the most intelligent investment that you make in 2025?

Pay attention to this growth point for growth

Rivian fought as an electric car share in 2024 when the industry dealt with the expected sales growth of a lower turnover than expected sales. In order to be clear, sales with electric vehicles (EV) still rose last year, but the growth rates fell under the forecasts of most analysts.

Without a well -known brand name like TeslaOr the short -term expectation for new model launches such as Clear groupRivian fought for relevance. However, this struggle could be over within 12 months, which creates the potential for a large upward trend of the current share price.

One of the largest growth hurdles that EV manufacturers are facing with is to realize affordable vehicles for mass market. The production of cheap cars usually requires scaling, but the relatively small size of new car manufacturers such as Rivian and Lucid makes it difficult. With this challenge, Tesla received this challenge by first introducing a luxury vehicle with lower volumes and higher prices to establish the EV manufacturer as a brand. Only after she had reached this initial scale did the company change into higher volume models with a lower price point.

Car manufacturers like Rivian and Lucid tried to follow this proven growth plan. Lucid only introduced its second luxury model at the beginning of this year. But after many metrics, Rivian is one or two years ahead of him because it already has two luxury models on the market. From the beginning of 2026 it is also planned to send the first of three new mass market vehicles, all of which will have a price of less than $ 50,000. This price should unlock tens of millions of new buyers for Rivian’s vehicles.

If you look at the growth of analysts this year, Rivian is last dead compared to the competition. Only 8.3% sales growth is expected for 2025. Understandably, Rivian shares on a price-to-sales basis (P/S) with only 2.3 times are the cheapest. However, if you look at 2026, this equation could turn around. Mass market vehicles were the key to the new growth of Tesla. So if you are ready to look beyond the typical 12-month time horizon of Wall Street, you can make the Rivian shares ahead with a discount before The next growth cash is coming.

Should you wait a little more before you jump in? The answer could surprise you.

PS ratio diagram

RIVN P/S ratio data from Ycharts.

Should you buy Rivian shares today or in 2026?

It is reasonable to ask the question: If Rivian’s growth does not return until 2026, should you wait until then to buy stocks instead of patiently waiting for a year?

It is difficult to buy growth stocks with a discount. This is because the market, as soon as sales growth turns, are generally redirected to a higher assessment. In order to make the biggest profit, investors have to buy shares before the rest of the market starts. This usually requires the purchase far from the growth points and patiently waits for growth to return.

Will Rivian’s growth increase in 2026? Nothing is certain. However, if Tesla’s growth history is an indication of this, the publication of mass market vehicles is a great recipe for doubling or even triple sales. With only 2.3 times sales, Rivian’s shares costs too cheap if these growth rates arrive in 2026 or even 2027. This story will take time, but Rivian shares can certainly be seen as “intelligent” investments for patient growth investors who want to achieve an advantage on the market.

Ryan Vanzo has no position in one of the types mentioned. The colorful fool has no position in one of the types mentioned. The Motley Fool has a disclosure policy.

Leave a Reply

Your email address will not be published. Required fields are marked *