Unlike the rampant excitement for electric vehicle (EV) stocks a couple of years ago, investors have pumped the brakes considerably over the past few months. Shares of electric truck manufacturer Rivian Automotive (NASDAQ: RIVN), for example, have skidded through the first half of 2024, plummeting about 40%.

But smart investors know that when stocks decline steeply, it could be an overreaction and, in fact, represent a great buying opportunity. With that in mind, let's look at some of the important things to know before powering your portfolio with Rivian stock.

Although Rivian's vehicles are now visible on America's highways, the company is burning through considerable amounts of cash. In 2022 and 2023, it reported negative cash from operations of $5.1 billion and $4.9 billion, respectively.

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Source Fool.com