Proceed With Caution When Considering This Ultra Popular EV Stock

Investors are about to find out in which electric vehicle (EV) camp Rivian Automotive (NASDAQ: RIVN) resides. Is it a struggling start-up like Lucid Group that is about to lower its production estimates for the second time this year? Or is it a budding juggernaut that will soon dominate its niche markets like Tesla?

The company will likely offer some clues when it reports its second-quarter financial update this Thursday, Aug. 11. Whether the update moves the stock up or down in the short term, investors should be wary of the potential news and proceed deliberately with any thoughts of investing in Rivian.

When Rivian reported its 2021 fourth-quarter and full-year earnings in February 2022, it told investors that it would only be able to produce 25,000 vehicles for the full year even though it already had equipment and processes in place at its Illinois factory to support the production of 50,000. That was due to supply chain constraints that had limited the availability of parts and materials needed for both its R1 platform consumer trucks as well as the electric delivery vehicles (EDVs) ordered by Amazon.

Source Fool.com